Question $2$

$($a$)$ Give a single paragraph outline $(5-7$ lines$)$ of the derivation of the Capital Asset Pricing Model $($CAPM$)$ formula that relates the expected excess return of an asset to the assets beta: $E(tilde(r{)}_j)=r_f+{}_j(E(tilde(r{)}_M)-r_f).$ Include a plot in your explanation.