OUTPERFORMANCE Meaning and
Definition
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Outperformance is a term used to describe a situation in which an individual, asset, or investment performs better or surpasses expectations compared to a benchmark or a reference point. It refers to a level of achievement that exceeds what is considered typical or average performance. Outperformance can be observed in a variety of areas, such as finance, sports, academics, and business.
In the context of finance and investing, outperformance denotes the ability of a particular investment portfolio, mutual fund, or stock to generate returns that are higher than a relevant market index, competitor, or predetermined benchmark. A fund manager or investor is said to have achieved outperformance if their investment has produced higher returns or lesser losses compared to the market average.
The concept of outperformance is based on the idea of relative performance, where the performance of one entity is evaluated in relation to another. It can be measured in terms of absolute returns, where the actual gains or losses are compared, or in terms of risk-adjusted returns, which take into consideration the level of risk associated with achieving those returns.
Outperformance is often sought after and valued, as it indicates superior skill or ability in a given area. Investors and individuals typically aim to identify strategies, techniques, or assets that have a history or potential for outperformance. It can be a measure of success or achievement, and is frequently used to evaluate the effectiveness of investment managers, athletes, companies, or students in comparison to their peers or standards.
Common Misspellings for OUTPERFORMANCE
- iutperformance
- kutperformance
- lutperformance
- putperformance
- 0utperformance
- 9utperformance
- oytperformance
- ohtperformance
- ojtperformance
- oitperformance
- o8tperformance
- o7tperformance
- ourperformance
- oufperformance
- ougperformance
- ouyperformance
- ou6performance
- ou5performance
- outoerformance
- outlerformance
Etymology of OUTPERFORMANCE
The word "outperformance" is a combination of two roots: "out" and "performance".
- "Out" is a preposition that means "beyond" or "surpassing". It is derived from the Old English word "ūt", which has Germanic origins.
- "Performance" is a noun that refers to the execution, accomplishment, or act of doing something. It comes from the French word "performer", which means "to carry out" or "to accomplish". "Performer" is derived from the Latin word "performare", consisting of "per" (through) and "formare" (to form or shape).
When these two roots are combined, "outperformance" is formed, indicating the act or state of surpassing the performance of others or exceeding a benchmark.
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