In investment models,a useful approach for generating future returns and inflation factors from historical data is:
A) the NPV approach
B) the scenario approach
C) the averaging approach
D) the trend analysis approach
E) None of these options

Question

Quizplus · Accepted Answer

The scenario approach is used in investment models to generate future returns and inflation factors by considering different possible future states of the world based on historical data.

In Investment Models,a Useful Approach for Generating Future Returns and Inflation