Question: The table below depict the expected return CCC Berhad and XXX Berhad for April and May: a) Calculate the betas for both stocks. (5 marks)

The table below depict the expected return CCC Berhad and XXX

The table below depict the expected return CCC Berhad and XXX Berhad for April and May: a) Calculate the betas for both stocks. (5 marks) b) Discuss the problems encounters when testing the CAPM empirically. (10 marks) c) In light of the problems in CAPM, the APT model was proposed as an alternative. Discuss how the APT overcome the shortcoming of CAPM. (10 marks)

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