Suppose Woolworths has a beta of 0.51 and Qantas has a beta of 1.78 ....
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Suppose Woolworths has a beta of 0.51 and Qantas has a beta of 1.78 . The riskfree interest rate is \2.20 and the market risk premium is \5.20. According to the CAPM, what is the expected return on a portfolio that borrowed \38 of its value at the risk free rate and invested \33 in Woolworths, \39 in Qantas, and the remainder in a market security (a diversified portfolio with systematic risk equivalent to the market)? Report your answer as a decimal to four decimal places
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