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{bl The members of the investment team have examined the returns that they think Westpac will generate next year. If they have found that the

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{bl The members of the investment team have examined the returns that they think Westpac will generate next year. If they have found that the expected returns should be 6%, using your previous calculation would you recommend that the superannuation fund should invest in Westpac shams? Why or why not? :I {cl Using the lilapital Asset Pricing Model (CAFMII nd the expected return on Santos shares when the expected return on Government bonds is {13%, the expected return on the market portfolio of shares is 13.2% and the Beta for Santos is 2.01. :l {d} The members of the invEstment team have examined the returns that they think Santos will generate next year. If they have found that the expected returns should be 15% using your previous calculation. would you recommend that the superannuation fund should invest in Santos shares? Why or why not? :l {E} How does the beta of a rm affect the expected return of that rm when using the CAPM model? :I {fl How is the l[tapital Asset Pricing model [CAPM] related to the Security Market Line {SML} in determining whether a rm is underpriced or overpriced? :l

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