Market Return

Market return is the return on the market portfolio. Market portfolio includes all assets in proportion to their market value in the corresponding index. In short, the market returns could also mean the corresponding benchmark returns. Market return is used by an investor or a trader as a benchmark to compare the returns of his own portfolio.

For example, a trader earns a return of 15% on his portfolio while the market returns a 12%, then the performance of the portfolio of the trader is said to be beating the market.