Plot normal curve
Continue with the two stocks. The aim is to produce a single plot containing the two assumed normal curves. Start with plotting the normal curve for the return on Microsoft stock.
With plot(x, y), you can plot the values of y on the y-axis against the
values of x on the x-axis. You can customize the plot in many ways through
additional arguments
(see the documentation):
set type = "l" to plot the data as a connected line, use col to specify the
line color, set axis labels with xlab and ylab, or set axis limits with
xlim and ylim.
This exercise is part of the course
Intro to Computational Finance with R
Exercise instructions
- Plot a line for the values of the assumed normal density for the return on Microsoft stock (
MSFT) againstx_vals. - Customize the plot in the following way: use a blue line, set the y-axis label to
"Normal curves", and set the y-axis to be in the interval \([0,8]\).
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# MSFT and x_vals are still in your workspace
# Normal curve for MSFT