Chapter 4.2, Problem 67E

To determine

(a)

To show:

That $F$ is equal to $\frac{1}{2}\left(1-r^2\right)\left(1+r\right)$.

To determine

(b)

To show:

That the maximum value of function $F\left(r\right)=\frac{1}{2}\left(1+r\right)\left(1-r^2\right)$ is approximately equal to $0.59$.

To determine

(c)

To explain:

The reason if the value of $r$ close to zero then $F$ is not meaningful.