benchmark
(1) A standard of comparison used for judging performance. For example, the return from a bond portfolio may be compared to the return from a benchmark instrument or portfolio. In this context, a nearly risk-free benchmark or one that closely matches the risk in the bond portfolio may be selected.
(2) The process of comparing a forecast or simulation to a standard for the purpose of evaluating the accuracy of the forecast or simulation. For example, the forecasted change in net income projected by an ALM simulation model may be benchmarked by comparing that forecast to subsequent earnings.
(3) See index. American Banker Glossary
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The performance of a predetermined set of securities, used for comparison purposes. Such sets may be based on published indexes or may be customized to suit an investment strategy. Bloomberg Financial Dictionary
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A standard used for comparison Exchange Handbook Glossary
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A standard used for comparison. For example, the performance of some index mutual funds is compared to the performance of for instance the CAC40 that serves as a benchmark. NYSE Euronext Glossary
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Standard gauge against which the performance of a given security can be measured. Indices are often used as a benchmark. NYSE Euronext Glossary
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▪ I. benchmark bench‧mark 1 [ˈbentʆmɑːk ǁ -mɑːrk] noun [countable]
1. something that can be used as a comparison by which to judge or measure other things:
• The newest Treasury bond is the benchmark bond, the one that trades most heavily.
2. COMMERCE a good performance that one company has achieved, that can be used as a standard to judge other companies of the same type:
• Companies need to know how much return they can expect from their IT investments: they need benchmarks to see how their systems are performing.
[m0]
▪ II. benchmark benchmark 2 verb [transitive] COMMERCE to use a company's good performance as a standard by which to judge the performance of other companies of the same type:
benchmark somebody/something against something
• British Steel have benchmarked themselves against the best operations anywhere in the world.
— benchmarking noun [uncountable] :
• Mr O'Neill, a newcomer to the industry, heeds theories of cost control and benchmarking against other industries.
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A standard used for comparison. A benchmark security is usually the most recently issued security in good size. It sets the standard for the rest of the market. A benchmark issue is highly liquid.
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Ⅰ.
benchmark UK US /ˈbenʃmɑːk/ noun [C]
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Apple's iconic iPhone became the benchmark in the market.
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The new report provides a benchmark for food companies around the world.
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The catalog industry can discover new opportunities by comparing its own business trends to industry benchmarks.
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They set the benchmark for ethical beauty packaging.
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The company sets the benchmark against which other businesses make health care decisions.
► FINANCE the benchmark for sth »
This year the benchmark for iron ore is $60 a tonne.
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The Merval stock index, the benchmark measure of Argentina's stock market, rose 8.2% yesterday.
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The benchmark price of oil dropped from $59 to $53 per barrel.
► IT benchmark program/software/test »
The benchmark tests show that the new machines are only slightly faster.
Ⅱ.
benchmark UK US /ˈbenʃmɑːk/ verb
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T] »
Being able to benchmark performance is very important for new companies.
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The European Parliament has launched a programme to benchmark employment laws across the EU.
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I or
T]
benchmark (sb/sth) against sth »
The company continues to benchmark against the competition.
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The results allow the company to benchmark itself against other organizations and identify areas for improvement.
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T]
IT »
Benchmark the speed of your computer.
Financial and business terms.
2012.