beat the averages

Beat the Averages

To perform better than the market as a whole. Many money managers are rated on their ability to beat the averages (which refers to broad market indices such as the DJIA or the S&P 500) with the portfolios they manage. Beating the averages may also refer to individual securities. See also: Manager Universe (Benchmark), Market outperform.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

beat the averages

To obtain superior investment returns, generally on a risk-adjusted basis, compared with popular stock price averages such as the Dow Jones Industrial Average or the S&P 500. Professional portfolio managers are generally judged by their ability to beat the averages, although many studies indicate that it is virtually impossible to do so consistently on a risk-adjusted basis.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.