1. Derive equation (6.9) k=1, 2, ..., n.

Substituting , you get .

Normalizing you have .

Also, note that: .

2. Derive the CAPM formula for by using equation (6.9 above). Apply (6.9) to asset k and to the market itself. Note that: .

Derivative equation (6.9) substituting Normalizing you haveAlso n note that Derive the CAPM formula for rk - rf by using equation (6.9 above ). Apply (6.9) to asset K and to the market itself. Note that Derivative equation (6.9) substituting Normalizing you haveAlso n note that Derive the CAPM formula for rk - rf by using equation (6.9 above ). Apply (6.9) to asset K and to the market itself. Note that