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

Oracle 12c: SQL
3rd Edition
ISBN:9781305251038
Author:Joan Casteel
Publisher:Joan Casteel
Chapter5: Data Manipulation And Transaction Control
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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 

Year Return
0
1
2
3
4
5
6
12%
-5%
33%
28%
-7%
-4%
Index High Mark Drawdown
1000
1000
1120
1120
1064
1120
1415
1415
1811
1811
1685
1811
1617
1811
0%
-5%
0%
0%
-7%
-11%
Transcribed Image Text:Year Return 0 1 2 3 4 5 6 12% -5% 33% 28% -7% -4% Index High Mark Drawdown 1000 1000 1120 1120 1064 1120 1415 1415 1811 1811 1685 1811 1617 1811 0% -5% 0% 0% -7% -11%
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