Assignment #6 Question 4

[awwalker]

In Assignment #6 Question 4 we are asked about returns and tasked with showing that:

Mathematically though isn't that asking to prove equality between a vector or scalar on the left and a matrix on the right? Any help would be appreciated...

[subhankar94]

Agreed, help would be appreciated. What exactly do E_t(R_t+1) and cov_t(m_t+1, R_t+1) mean?

[mmcky]

@awwalker @subhankar94. Please submit what you have done for the homework. We will release full solutions to all questions in the next day or so.

[mmcky]

Also - think deeply about what R represents and how to correctly compute the Expected Value.
The trick is in computing E(R).