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Stock Portfolio Sample

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This diagram models an investment growth scenario over time, incorporating key financial planning elements like annual contributions, mean returns, and variable market performance. At its core, the diagram utilizes mathematical models to simulate the annual return of an investment, based on the standard deviation and mean return parameters, and calculates the year-end investment value considering annual contributions. The system employs a normal distribution formula to generate a random yearly return, reflecting the real-world variability in investment returns.

The interaction between nodes is primarily focused on calculating the return on investment (ROI) by adjusting for the mean return and standard deviation, alongside accounting for annual contributions. The diagram makes use of registers to hold formulas that perform calculations related to investment growth, including simulating market conditions by generating a normal distributed random return. Additionally, it integrates a mechanism to update the previous year's end value of the investment, cycling this value back into the calculation for the next period’s end value, thus illustrating the compounding effect over multiple time steps. The diagram represents a sophisticated financial model that can be used to visualize and predict the growth of an investment portfolio over time.

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