Abstract
There are more than one hundred portfolio performances, which have been proposed in financial literature, (Cogneau and Hubner ¨ , 2009), but extensively used performance measure is a Sharpe ratio and in Pakistan Asset Management Companies (AMCs) also prefer to exhibit their performance in Sharpe ratio. However, financial literature has ample of evidence that recommend Sharpe ratio is valid under normal distribution of returns. The financial returns are not distributed normally as result of which standard deviation may not adequately measure risk (Bodie et al., 2009). Whereas, standard deviation of negatively skewed distribution underestimates and positively skewed overestimates volatility that would be misleading Sharpe index. In this study, we concluded that for skewed and non-normal distribution Omega ratio or Sharpe-Omega are alternative performance measures.
Syed Zakir Abbas Zaidi. (2020) Performance Appraisal of Open-ended Equity Funds in Pakistan: An alternative Approaches of Performance Measure, Jinnah Business Review, Volume 8, Issue 1.
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