Question: What is the Maximum Drawdown used in the performance evaluation of an investment strategy? Choose the response which best answers this question. The maximum drawdown

What is the Maximum Drawdown used in the performance evaluation of an investment strategy? Choose the response which best answers this question.

  1. The maximum drawdown indicates the loss from a peak to a trough of a strategy, before a new peak is attained.
  2. The drawdown indicates the loss from a peak to a trough of a strategy, before a new peak is attained.
  3. The maximum drawdown indicates the largest loss from a given peak to a trough.
  4. The drawdown indicates the maximum loss from a peak to a trough of a strategy, before a new peak is attained.

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