Suppose that I now fit the CAPM model for Qantas stock using ASX as the market portfolio. I tell you that: rQantas = -0.02 + 0.95* TASX + SP Question 10 continued (b) If you would like to have zero market (ASX) risk and suppose you have $100, how would you invest using ASX and Qantas stock? Correct Answer short sell $100 of Qantas and long $95 of ASX and $5 of lending long $100 of ASX and short sell $95 of Qantas and $5 of borrowing You Answered long $100 of Qantas and short sell $95 of ASX and $5 of borrowing