Differentiability lets us write
and, with ,
Substitute . Since , the remainder is . Thus
and the chain rule is
No. At , let
The function is differentiable at , and
so the composite has derivative one at zero. But
is unbounded, so is not differentiable. This is a nondifferentiable inner function with a differentiable nondegenerate composite.
To say that is twice differentiable at means that is defined in a neighbourhood of and is differentiable at ; its derivative is .
By the chain rule, near ,
Since is differentiable and is differentiable at , another use of the chain rule shows that is differentiable at . The product rule then proves that the displayed product is differentiable. Hence is twice differentiable, with the second derivative chain rule

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