Hi, Can anyone help me on issues involved in the use of Sharpe ratio to evaluate hedge fund performance? Many thanks, Lee ------------------------------------------------------------------------------------------------------------- Reading 36 - LOS s: critique the conventions and special issues involved in hedge fund performance evaluation, including the use of hedge fund indices and the Sharpe ratio; Issues involved in the use of indices: - Bias in index creation - Relevance of past data on performance - Stale price bias - Survivorship bias - Backfill bias
HI all, I’ve found the answer on P.87 of the CFA books. Thanks, Ricky