Appendix1. Sharpe ModelAnother method of estimating the performance of mutual funds with regards to risk and return are the Sharpe ratio and the Treynor. The Sharpe ratio is estimated as the return above the risk-free rate (Treasury bond rate) over the standard deviation of the portfolio. It is also used to compare the performance of different mutual funds in the mutual fund sector of a country economy. The required model was borrowed from the study of Sharpe Eleni Thanou (2008)Rp = Average Portfolio ReturnRf = Risk-Free Rate, Govt. Six Month Treasury Bills Used as Risk Free = Portfolio Standard Deviation Treynor Model Treynor ratios also define the excess return over the risk free rate, in this ratio total risk is used instead of systematic risk. The ratio is estimated by the following model: -Portfolio Beta = Standard deviation of the portfolio divided by the standard deviation of the market return, which is used as the KSE return, the remaining variables are the same as above.1. Sharpe Ratio Table - 9 Portfolio Average Standard Deviation (Rp - Rf)/Fund SD Sharp Rank1 UGIF -0.000191105 0.02204192 4.404774809 02 MBPSF 0.00233997 0.024336803 4.093420548 13 PIF 0.00 0019058 0.025291926 3.847071942 24 JSIF -0.000662803 0.025531933 3.78420217 35 AIF -0.000347465 0.028526949 3.397956531 46 DMMF - 0.00371523 0.040481563 2.311313138 57 FBGF 0.002449759 0.065626554 1.519667764 68 ASMF 0.005993206 0.079102199 1.305576919 79 PCMF -0.003759826 0.073155379 1.278388208 810 UTP -0.004788889 0.081944625 1.128712335 911 Index KSE-100 0.006454067 0.098185994 1.05651388 8 1012 NIT -0.004738108 0.089531637 1.033631168 1113 UIF -0.010810122...... paper average ......ZAsian Stock Fund Limited ASFLBSJS Balance Fund/JS Value Fund BSJS/JSFCapital Mutual Fund Limited 1st CMFLGolden Arrow GAPak Premier Fund Limited PPFLSafeway Mutual Fund Limited SMFLUPT-Large Cap Fund (Now) JS Large Fund JSLFPICIC Investment Fund PICIC IFICIC Growth Fund PICIC GFPakistan Strategic Fund PSFMezan Balanced Fund MBFAtlas Fund AFFNational Investment Trust NITDawood Money Market. DMMFJS Income Fund (Formerly UTP Income Fund) JSIFMetro Bank - Pak. Sovereign Fund MBPSFPak. Income Fund PIFUnited Money Market Fund (Now) United Growth & Income Fund UGIFCrosby Dragon Fund CDFPakistan Stock Market Fund PSMFUnit Trust of Pak UTPMeezan Islamic Fund MIFUTP - Islamic Fund UIFAtlas Income Fund AIFAtlas Stock Market Fund ASMFFaysal Balance Growth Fund FBGFPakistan Capital Market Fund PCMF