Benchmark

Value used as a reference or means of comparison for measuring the performance of an investment.

The benchmark typically used to assess the performance of stocks and bonds is the index. Investors select benchmarks which reflect their personal preferences with respect to risk and return. For example, an investor who is willing to assume a moderate level of risk to achieve a moderate return could use the DAX® index as a benchmark when deciding which stocks to buy.

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Benchmark

Value used as a reference or means of comparison for measuring the performance of an investment.

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