The term that refers to making a portfolio "market-like" is?

The term that refers to making a portfolio "market-like" is indeed associated with beta. Beta is a measure of a portfolio's volatility in relation to the overall market. A beta of 1 indicates that the portfolio's price moves with the market, implying that it has a market-like exposure. When you aim to make a portfolio market-like, you typically want it to reflect the movements of the market index while maintaining a similar risk profile. This involves adjusting the portfolio's holdings so that its systematic risk aligns with that of the broader market, which is precisely what beta quantifies.

Standard deviation measures the overall volatility or risk of a portfolio but does not directly relate to how closely it mimics market movements. Alpha indicates the performance of a portfolio relative to a benchmark and is often associated with the idea of outperformance rather than just matching market performance. Diversification is a strategy used to reduce unsystematic risk by spreading investments across various assets but does not specifically imply achieving market-like characteristics. Thus, beta is the correct term when discussing the alignment of a portfolio's performance with that of the market.