import matplotlib.pyplot as plt from math import exp, sqrt from random import normalvariate alpha = 0.5 s = 0.25 a1 = 15 a2 = 25 ss = sqrt(0.02) kb = 24.1 def update(k): a = a1 if k < kb else a2 return s * a * (k**alpha) * exp(normalvariate(0, ss)) def ts(init, T): k = init path = [k] for t in range(T): k = update(k) path.append(k) return path L = 500 plt.plot(ts(1, L), 'k-') plt.plot(ts(60, L), '-', color='grey') plt.xlabel('time') plt.ylabel('investment') plt.show()