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The expected returns and actual returns of several shares is given below. Share Expected Return Actual return Pick and Pay 12% 9.8% Shoprite 14% 16.4%

The expected returns and actual returns of several shares is given below. Share Expected Return Actual return Pick and Pay 12% 9.8% Shoprite 14% 16.4% Checkers 17.5% 17.6% Spar 8% 7.3% 5.2.1 Which shares must the investor buy and why? (2) 5.2.2 Which shares must the investor sell and why? (2) 5.3 State and explain any two (2) weaknesses of CAPM. (4)

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