Stock Speculation: In a classic paper on the theory of conflict, L.F. Richardson claimed that the proportion p of a population advocating war or other aggressive action at a time t satisfies
p(t) = (Ce^kt) / (1 + Ce^kt
where k and C are positive constants. Speculative day-trading in the stock market can be regarded as “aggressive action.” Suppose that initially, (1/200) of total daily market volume is attributed to day-trading and that 4 weeks later, the proportion is (1/100). When will the proportion be increasing most rapidly? What will the proportion be at that time?
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