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Underperform

Definition: [crh] In general, this means to do worse than some particular benchmark. Mutual Fund XYZ is said to underperform the S&P500 if its return falls short of the S&P500 return. However, this languDefinition: age does not take risk into account. That is, one might have a lower return than the benchmark in a particular year because of lower risk exposure. Underperform is also a term used by analysts to desDefinition: cribe the prospects of a particular company. Usually, this means that the company will do worse than its industry average. Related: outperform.

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