benchmark

A benchmark is a standard or reference point used to measure or compare the performance, quality, or efficiency of something. In various fields, such as finance, technology, or business, benchmarks help determine if a product, company, or process is performing well relative to others or established standards. For example, an investment benchmark may be a stock index used to evaluate how a fund's returns compare to the overall market. Essentially, benchmarks serve as a baseline to assess progress, make informed decisions, and identify areas for improvement.