Financial scenario
A consistent set of assumptions used to observe one possible path.
Definition
A consistent set of assumptions used to observe one possible path.
Why this concept matters
Comparing scenarios shows which assumptions influence a goal most.
How it works
The same starting position is recalculated with different periods, contributions, returns or inflation levels. The gaps show how sensitive the goal is.
What to watch
A cautious or optimistic scenario is neither a forecast nor a probability of outcome.
Simple example
Elephlow can compare 15, 20 or 25 years using different assumed returns.
Example currency : France (EUR). The reference country controls the example currency.
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