The stock index a given mutual fund uses as its measuring stick.
Dino is a mutual fund manager who oversees a fund invested in U.S. Small Cap stocks. Since his clients have already decided that they want to invest in small cap stocks, Dino wants to demonstrate his stock picking skills relative to the entire market of small cap stocks. To this end, Dino has selected the Russell 2000 Index as the most relevant benchmark for correlation values such as total return, beta, and other risk/reward metrics.
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