What Is A Benchmark ? with example 

In a nutshell, a benchmark is a baseline that serves as a reference point. It is an informed assessment metric used in the financial industry to assess the performance of a certain asset or investment portfolio. 

Indexes, which are essentially financial instruments and used to reflect a set of individual market prices or a collection of data points, are one of the most popular types of benchmarks.

For a number of asset types, such as securities, bonds, stocks, and cryptocurrencies, several benchmarks have been developed. 

The S&P 500 index, which measures the market capitalization of 500 big US firms, is a popular example of a benchmark. 

A qualified committee chooses these firms based on a weighted formula.

In the world of computer science, a benchmark is a term that refers to the process of executing several computer processes and software to assess the relative performance of a product or service.

 Many benchmarking tools are commercialized as software that are particularly designed to evaluate huge volumes of data.

Benchmarks are also employed in the context of business analysis as a technique that frequently includes the measurement and comparison of company behavior and 

performance - either against what would be deemed the most productive or acceptable practice or against other highly successful firms.

Benchmarking is a method of comparing the performance of your asset or investment portfolio to that of similar assets to see whether there is a gap that can be bridged by increasing performan