Aunt Amelia has passed away leaving your Uncle Ethelred with the following investment portfolio. By answering the questions below, can you give him advice on which investments to keep or increase in holding and which ones he should sell. For your information, the FTSE 250 Index has return of 15% and Bank of England bonds have a return of 2%. Please answer the following questions based upon the above scenario:

CODE	NAME	BETA	ROE	P/E RATIO
UKCM	UK COMMERCIAL PROPERTY	0.82	11%	36.12
FOUR	4IMPRINT GRP.	1.43	25%	10.00
888	888 HLDGS	0.95	41.60%	8.41
ASL	ABERFTH.SMLL.CO	1.58	-99%	-3.12
AGK	AGGREKO	0.73	9.25%	15.96
AAF	AIRTEL AFRICA	1.33	6.73%	22.70
AJB	AJ BELL	0.38	6.58	30.13
CRST	Crest Nicholson	0.75	9.52%	15.58
RAT	Rathbone	0.59	5.46%	44.00
ASCL	ASCENTIAL	0.79	31.15	29.79
PLP	Polypipe	0.54	15.22	21.96

a) Using relevant information and theory, which shares do you think he should sell?

b) Using relevant information and theory, which shares do you think he should keep or even increase in holding?

c) Your late Aunt held all of these shares in roughly equal amounts. Was this a good idea and if not, what would you suggest and why?

d) Given your understanding of relevant theory, what should happen to shares which are offering rates of return which are different from the market, i.e., not on the Security Market Line.