Question: Please help From its past behavior, John knows that the value of a stock has a cyclical component that increases for the first three months
Please help
From its past behavior, John knows that the value of a stock has a cyclical component that increases for the first three months of each year, falls for the next 6. and rises again for the last three. In additino, inflation adds a linear component to the stock's price. John is seeking a model of the form f(t) = mt+b+Asin(pi . t/6) where t is the number of months since January 1, 2000. He has the following data: Date: Jan 1 Apr 1 Jul 1 Oct 1 Jan 1 Price: $20.00 $37.20 $33.20 $29.20 $46.40 Find values of m, b, and A so that f fits the data. During which months(s) does this stock appreciate the most? The stock appreciates the most between During which period each year is this stock actually losing value? The stock loses value between
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