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Fundamental
Benchmark
A standard used to compare performance
Definition
A benchmark is a standard or reference point used to evaluate investment performance. Common benchmarks include the S&P 500, Russell 2000, or bond indices. Portfolio managers aim to outperform their benchmark (generate positive alpha) while taking similar or less risk.
Related Topics
#performance measurement
#comparison
#index
#alpha
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Category: Fundamental
Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.
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