What is a benchmark in investing?
An example of an AI chatbot conversation about investment benchmarks.
What is a benchmark in investing?
A benchmark in investing is a standard or point of reference against which the performance of an investment portfolio can be measured.
Can you give me an example of a benchmark?
Sure! A common example is the S&P 500, which represents the performance of 500 large companies in the U.S. stock market.
Why is it important to use benchmarks?
Using benchmarks helps investors assess how well their investments are performing compared to the market or a specific sector.
How often should I check my benchmark?
It's advisable to review your benchmark regularly, such as quarterly or annually, to ensure your investments align with your goals.
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