Benchmark Error

Business, Legal & Accounting Glossary

  1. Home
  2. Glossary
  3. Define: Benchmark Error

Definition: Benchmark Error

Benchmark Error
Cite Term
Sources

Full Definition of Benchmark Error

Use of the wrong benchmark for creation of a market portfolio – for example, if calculating the capital asset pricing model for European Stocks, a benchmark error would be using the American index (Dow Jones Industrial Average) as the benchmark. Benchmark errors result in extremely inaccurate calculations.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/benchmark-error/
Modern Language Association (MLA):
Benchmark Error. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 18, 2024 https://payrollheaven.com/define/benchmark-error/.
Chicago Manual of Style (CMS):
Benchmark Error. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/benchmark-error/ (accessed: April 18, 2024).
American Psychological Association (APA):
Benchmark Error. PayrollHeaven.com. Retrieved April 18, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/benchmark-error/

Definition Sources

Definitions for Benchmark Error are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.