Ch.11 · Comparing Fund Performance · hard
What is 'maximum drawdown' as a risk metric in mutual fund performance evaluation?
0% of students got this wrong
EXPLANATION
Maximum drawdown is the largest percentage decline in NAV from its peak to the subsequent trough before a new peak is reached. It measures the worst-case loss an investor could have experienced if they invested at the peak. Lower maximum drawdown indicates better downside protection.
Practising Chapter 11 one question at a time?
Try the full chapter — 60 questions, tracked score, weak area breakdown.