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index benchmarking

Index benchmarking allows the comparison between the performance of a portfolio(of assets) to that of the performance of an index within the market. This process helps determine whether you should readjust your portfolio, or ride it out.

Benchmarking can be done over the term of 1 year, up to maximum years of your portfolio. Responses to a lower performance than the index can include 'selling the winners and buying the losers', 'manipulating the beta', and 'increasing diversification' just to name a few.

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Investment Analysis

Category: Business

Total terms: 10

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