A benchmark is a standard or test used to measure the performance of Hardware or Software. It provides a quantifiable reference point for comparison, indicating how well a system or component operates under specific conditions.
In Finance
In Finance, a benchmark is often a standard used to measure the performance of an Investment fund, Portfolio, or individual security. It helps investors assess whether an investment strategy is outperforming or underperforming the market or a specific sector. Examples include stock market indexes like the S&P 500 or bond indexes.
