Question 1 Mr. Williamson has just inherited 500,000 and he needs some advice on how to invest it. Having examined the market opportunities you have found that the return on the market is 8% and the risk free rate of interest is 4%. You have identified the following shares that look like good investments: Share A B C D .5 .8 1.2 1.4 (Beta) Anticipated Return 6% 8% 9% 11% Calculate the returns that you should receive on these shares, if the Capital Asset Pricing Model (CAPM) holds, and make appropriate recommendations. [10 marks]