Calculate the likelihood of a drawdown in java to four figures Drawdown = (current index value -
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Question:
Calculate the likelihood of a drawdown in java to four figures
Drawdown = (current index value - highest historical index value) / highest historical index value
Ex you will be given a series of numbers say 0.22 -0.05 0.17 -0.03 0.12 -0.02 0.41 0.22 -0.03
Answer = 0.1071 => expected probability a downturn will be experienced of -10% over 9 years given 9 values above. The table below I made should help provide any missing context
Related Book For
Management Science The Art of Modeling with Spreadsheets
ISBN: 978-1118582695
4th edition
Authors: Stephen G. Powell, Kenneth R. Baker
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