Respuesta :
Answer: No, we will not invest money in this stock.
Step-by-step explanation: In the attached figure , the price p of the stock (Y-axis) is plotted against time t (X-axis). Let P(a,b) and Q(c,d) be any two points on the graph. Since the slope m is negative, so, we have
[tex]m< 0\\\Rightarrow m< \dfrac{d-b}{c-a}[/tex]
Since [tex]c> a[/tex], so, we must have
[tex]d-b< 0\\\Rightarrow d< b.[/tex]
This implies that, as the time increases, the price of the stock decreases. Hence, it will be a loss investing money in this stock.
Thus, we will not invest money in the stock because there will be loss.
