The following are expected returns on two shares: PRICEWORTH INTERNATIONAL BERHAD (PWORTH) and RIMBUNAN SAWIT BERHAD (RSAWIT) and for the markets for four months (January until April 2020):

Month	Return on FBM KLSE CI	Return on Stock	Return on Stock
		PWORTH	RSAWIT
January	2.085%	15.20%	5.60%
February	6.455%	8.05%	12.20%
March	8.655%	4.025%
April	10.417%	-0.80%

1. Calculate the betas for the two stocks.

(10 marks)

2. Illustrate the Capital Asset Pricing Model (CAPM) based on conceptual, graphically and mathematically.

(15 marks)

3. In light of the problems of the CAPM, the APT model was proposed as an alternative. Explain how does the APT overcome the shortcoming of the CAPM.

(5 marks)