o) Confirm that rM=wr=wiri=w1r1+w2r2+w3r3. Also note that the covariance between the return of asset i and the market (which consists of these three assets) is given by Cov(ri,rM)=i,M=Cov(ri,w1r1+w2r2+w3r3) Using the above show that the market variance M2=wii,M c) What is the relationship between i,M and M2 ? Can we think of the ratio M2i,M as the contribution of a stock to the risk of the market portfolio