The Investment element simulates the growth of an investment or group of investments such as a security or portfolio of securities. You input purchases, sales and the unit value of the investment, and the element outputs the investments current value.
The Investment.gsm example model can be found in the can be found in the Financial Examples folder in your GoldSim directory (accessed by selecting File | Open Example... from the main menu). It demonstrates how an Investment element could be used to model the performance of an investment in a stock:
In particular, the model simulates the performance of an investment into Acme stock over a ten year period. In this case, the initial holding is $1000, and an additional $1000 is invested at the end of each simulated year:
The price of the stock is modeled using a History Generator An element that generates stochastic time histories of variables. A stochastic time history is a random time history that is generated according to a specified set of statistics. element, which is then used by the Investment element (My_Acme_Account) to determine the current value of investment holdings.
The result of the model is a graph which tracks the current value and the total amount invested over the duration of the simulation:
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