Answer: Forecast scenarios can be evaluated against those implied by current market valuations.

**Explanation:** - **Option A** is incorrect because scenario analysis involves creating multiple forecast scenarios based on varying outcomes of risk factors, rather than providing a single-point estimate. - **Option B** is correct. Investors often compare scenario-based forecasts with those from other analysts (e.g., sell-side analysts) and forecasts implied by current valuations to inform their investment decisions. - **Option C** is incorrect. While generic risk factors (e.g., business cycle changes, competition, inflation, deflation, and technological developments) affect all companies, their impact varies by company. Scenario analysis incorporates these factors and assesses their likelihood of occurrence.

Author: LeetQuiz Editorial Team