Benchmark
A reference index against which a portfolio's return and risk are measured — the yardstick that says whether a result is good in context.
A benchmark is a standard of comparison: a broad index, or blend of indices, that represents the market or strategy a portfolio is trying to match or exceed. Returns mean little in isolation; set against a benchmark they take on meaning.
Choosing a fair benchmark matters — one that reflects the same assets and the same risk. A result that looks strong can turn out ordinary once compared to a simple index, which is why honest reporting always states what it is measured against.