% This code plots net and log returns. 

% First the vector x is created with elements starting at 
% -0.65 until 0.65 at 0.001 increments.
x=(-0.65:0.001:0.65);

% Then the image y of g(x)=log(1+x) is created.
y=log(1+x);

% Then we plot x against iteself (x) and x against y

figure (1)
z=x;
plot(x,y,x,z)
box off
grid on
xlabel('Net returns')
ylabel('log(1+x),x')




