The best-case scenario is a scenario that represents the best possible return for a specific investment portfolio, taking into account the individual investment products for a specific investment horizon within a defined observation period.
The best-case scenario can be modelled based on historical data, market trends and other factors. However, it is important to note that the best-case scenario does not necessarily represent a realistic forecast for the future development of the portfolio and should not be taken as a guarantee for the success of an investment.
However, the best-case scenario can serve as a useful tool for evaluating investment portfolios and can be used to guide investment decisions. It can also help to identify and minimise risks in the portfolio.
Overall, the best-case scenario is an important tool for evaluating investment portfolios, but should always be used in combination with other analytical tools and a comprehensive risk assessment.
