QUESTION B3 (4 + 4 + 2 = 10 marks) Pacific Blue Limited has a beta of 0.8, the rate on Australian Treasury Bonds is 2.5% and the expected return for the All Ordinaries Index is 6%. Required: a) Calculate the required return (i.e. Expected Return) for Pacific Blue Limited. (4 marks) H2C091 Business Finance b) What does it mean in terms of the market security line when 0