Is this an appropriate probabilistic range of expected outcomes for this chart?

Question image

Understand the Problem

The question is asking whether the displayed chart represents an appropriate probabilistic range of expected outcomes, and it allows for different interpretations based on volatility, alpha, beta, or price movement.

Answer

Yes, a cone of outcomes seems appropriately volatility adjusted.

The final answer is 'Yes, a cone of outcomes seems appropriately volatility adjusted'.

Answer for screen readers

The final answer is 'Yes, a cone of outcomes seems appropriately volatility adjusted'.

More Information

This suggests that the probabilistic range accounts well for the asset's inherent volatility.

Tips

Avoid assuming the cone's accuracy without checking historical volatilities.

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