Draw an influence chart to help develop a spreadsheet model


A newlywed couple is planning for its future. Specifically, they are considering investing in 3 different stocks. The average return for each of the stocks is 14%, 1 1%, and 10%, and the standard deviations on the returns are 20%, 15%, and 8%. The correlations between stock returns: 0.6 (between 1 & 2), 0.4 (between 1 & 3), and 0.7 (between 2 & 3). Draw an influence chart to help develop a spreadsheet model for the profit over the next year.

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Financial Management: Draw an influence chart to help develop a spreadsheet model
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