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The prices of two assets are initially the same. The values of the two assets at time 7 years are given below: Asset A:
Posted: Sun May 29, 2022 4:38 pm
by answerhappygod
- The Prices Of Two Assets Are Initially The Same The Values Of The Two Assets At Time 7 Years Are Given Below Asset A 1 (45.34 KiB) Viewed 17 times
The prices of two assets are initially the same. The values of the two assets at time 7 years are given below: Asset A: The value is modelled by the following cubic function V₁ = 4Nx 10 000 + 10 00072-50 0007³ Where N is the last non-zero digit of your ID number. Asset B: The value of this asset is modelled by the following cubic function: V=B+100007² - 50 0007³ You are to write a short report to describe the two assets and make an appropriate comparison. You need to: • Sketch the graphs of both assets' values against time and describe the behaviour of both model as 7 increases. Explain what is the valid range of T and why. • Compare the two assets' values and find the largest percentage difference between the two values within the valid range of T. • Plot the graph of VA/V and discuss how both assets can be compared using this graph. . Give an example of an asset that can be represented by model A and by model B providing appropriate explanations.