What is a Benchmark in the World of Finance?

A benchmark is often an index, or combination of indexes that managers use to measure the financial performance of the portfolio for the benchmark.  A benchmark should be a broad section of an industry or assets. 

“The Financial System Benchmark measures and ranks the 400 most influential financial institutions on their contribution to a just and sustainable economy.” (World Benchmarking Alliance)

Learn more about Capital Benchmarks from the Corporate Finance Institute