One example of a flawed benchmark is using the median manager from a broad universe in a peer group comparison.

Question

Quizplus · Accepted Answer

Using the median manager from a broad universe as a benchmark can be flawed because it may not accurately reflect the characteristics or performance of a specific peer group. It is better to use a benchmark that is tailored to the specific industry or market segment being analyzed.

One Example of a Flawed Benchmark Is Using the Median