Show that for equation (6.10) all rates of return $r$ can be transformed by the linear relation

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Show that for equation (6.10) all rates of return $r$ can be transformed by the linear relation $R=a r+b, a>0$ and that equation (6.10) will still hold for the $R$ 's (although the $v_{i}$ 's will need to adjust as well).

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Investment Science

ISBN: 9780199740086

2nd Edition

Authors: David G. Luenberger

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