Purpose of Benchmarking in Portfolio Evaluation

In the world of portfolio management, benchmarking is a crucial process for evaluating the performance of an investment portfolio.

A benchmark is generally a standard against which the performance of a security, mutual fund, or investment manager can be measured. It helps in discerning whether an investment manager has done better or worse than the market or an appropriate index.

Which of the following is the primary purpose of using a benchmark in portfolio performance evaluation?