6
QuizMultiple Choice

Building a Diversified Investment Strategy — Quiz

Question 6 • Personal Finance

What does benchmarking compare?

Answer
A
Investment performance
B
Risk levels
C
Tax rates
D
Income types

Explanation

Benchmarking compares an investment’s performance with a relevant standard, such as a market index or peer group. This shows how well the investment has done relative to that benchmark. Therefore, the correct choice is Investment performance.

AI-written and checked against the verified answer.

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