Most sources report alphas and other metrics relative to a standard benchmark, such as the S&P...

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Finance

Most sources report alphas and other metrics relative to astandard benchmark, such as the S&P 500. When might this methodbe an appropriate comparison?

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The broad market index such as SP 500 has been used as the benchmark in many cases Every large mutual fund houses uses this index for many purposes It can be used to know the performance of fund managers Whether they have performed good or bad can be indicated by    See Answer
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Most sources report alphas and other metrics relative to astandard benchmark, such as the S&P 500. When might this methodbe an appropriate comparison?

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