In risk management, drawdown is measured as the:
A) total outflow of funds during a period.
B) percent difference between maximum fund value and subsequent minimum value.
C) percent difference between fund and benchmark return during worst performance.
D) amount of funds needed to be invested to achieve minimum acceptable return.

Question

Quizplus · Accepted Answer

Drawdown is the percent difference between the maximum value of a fund and its subsequent minimum value, indicating the decline from peak to trough.

In Risk Management, Drawdown Is Measured as The