Prove that, when the security f provides income at rate q, equation (28.9) becomes μ+q-r=λσ. (Hi

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1. Start with equation (28.9): $mu+q-r=lambda sigma$.

2. Assume that all the income from securi

Prove that, when the security $f$ provides income at rate $q$, equation (28.9) becomes $\mu+q-r=\lambda \sigma$. (Hint: Form a new security $f^*$ that provides no income by assuming that all the income from $f$ is reinvested in $f$.)