Relationship between annualized volatility and maximum withdrawal rate
The same is true of the relationship between annualized volatility and the maximum retracement rate. The annualized volatility measures the degree of fund volatility, and the maximum withdrawal measures the worst performance of the fund in a certain period of time. The annualized volatility and the maximum extraction rate reflect the volatility risk of the investment target, so the relationship between the annualized volatility and the maximum extraction rate is the same.