Standard deviation tells you about typical volatility. Maximum drawdown tells you about the worst pain: the largest peak-to-trough decline your investment has experienced. VTI's maximum drawdown is -5...
Standard deviation tells you about typical volatility. Maximum drawdown tells you about the worst pain: the largest peak-to-trough decline your investment has experienced. VTI's maximum drawdown is -51%. Bitcoin's is -83%. You need to know the worst case, not just the average case.
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