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Stock Portfolio Sample

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This diagram models a simplified investment portfolio simulator focusing on annual contributions, simulated returns based on a normal distribution, and the resulting year-end values over time. At the core, it simulates the process of making an annual fixed contribution to an investment account, calculates returns based on randomly generated values influenced by a specified mean return and standard deviation, and computes the year-end value considering both the new contribution and the return on the previous year's end value. 

The simulation operates through a series of connected registers and pools that use statistical formulas to mimic the variability and performance of investments. The 'Normal inverse' register generates a random number from a normal distribution, which is then used to calculate the 'Return' for a year by adjusting it with predefined 'Mean return' and 'Standard Deviation' values. This simulated annual return is applied to the sum of the 'Annual Contribution' and the 'Previous Year End Value', to determine the 'Year End Value'. This process represents a cycle of investment growth over time, emphasizing the impact of compound interest and market variability. It’s a useful tool for understanding how different factors can affect the growth of investment over multiple periods.

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