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In a competitive market the reward to risk ratio can be expressed as: E(RA)- E(RB) = Rp E(RA) = E(R) [E(RA)- Rp] = Ba [E(RA)-

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In a competitive market the reward to risk ratio can be expressed as: E(RA)- E(RB) = Rp E(RA) = E(R) [E(RA)- Rp] = Ba [E(RA)- Rt]/Ba> [E(RB)- R[]/Bb [E(RA)- R+]/Ba = [E(RB)- Rt]/Bb

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