Coned context DEA model with application to mutual funds evaluation

This paper proposes a coned context-dependent DEA model by incorporating cone ratios into context-dependent DEA models. This allows for the input of experts knowledge and judgment in the production of rational scores that evaluate mutual funds relative attractiveness and progress. Based on this model, we make an empirical study of mutual funds in China and manage to draw some insightful management information. The paper shows that the coned context measure helps investors to select the best fund and helps fund managers to identify any potential competitors. The reason of performance differences and improvement venues are also analyzed.