OFDC Ltd has a beta of 1.5, the rate on Australian Treasury Bonds is 4.5% and the expected return for the All Ordinaries Index is 9%.
Calculate the required return (i.e. Expected Return) for GDFC Ltd.
If you like to invest in OFDC Ltd and expected return of this company is 7.05% and standard deviation is 5.2%. What is the maximum expected return from this project from this investment?