Finance School of management Example: To Determine A E(M)=0.14,M=0.20,7=006 E(r)-r=Aa→sb(m)-r 2 M 0.14-0.06 2.0 0.202 uesTc 1010 Finance School of Management Example: To Determine ‘A’ 2.0 0.20 0.14 0.06 ( ) ( ) ( ) 0.14, 0.20, 0.06, 2 2 2 = − = − − =  = = = = A E r r E r r A A E r r M M f M f M M M f s s s