How Does Scenarios Calculate Forward-Looking Returns Using the 10-Year Return?

The 10-Year Average Return method calculates the average annual return of a security over the past 10 years and applies that historical average as a constant annual growth rate to generate forward-looking performance projections. This approach assumes that future performance may reflect the long-term trends observed in the past decade. It will also assume that growth over the future years is consistent from year to year and may differ from actual growth.