beat the averages


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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.

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.