MCV$4$U Assignment $-$ Derivative function

MCV$4$U Assignment $-$ Derivative function

Namo.

Date:

Name:

Date:

Stock Analysis

$7A,TT$

Financial analysts use graphical models to predict stock values for a new stock. It is important for stock brokers to know about instantaneous changes of a stock price. To create a stock pricing model, analysts look at past behavior and future expectations for that stock.

A stock broker has developed the following model for the price of his favourite stock:

$f(t)=\{\begin{array}{cc}2t^2+at+b,& t<mn\; id="EditorElement\_692712">0</mn>\\ a,& t=0\\ 3(t+1{)}^4+c,& t>0\end{array}$

a$)$ Why is it important for the stock broker to know about the instantaneous changes of a stock price? $[2$A$]$

b$)$ What should be true about the function $f(t)$ in order for the stock broker to know how fast the stock price is changing in the present instant $)=(0.[2$A$]$