Are the following shares undervalued, correctly valued or overvalued? The rate for a risk-free asset is 5.5% and the market risk premium is 4%.

Share Imperial Tobacco Rémy Cointreau AB Inbev Axa Nokia

β 0.34 0.77 0.92 1.21 1.4 Rate of return 3.5% 5.4% 5% 9.2% 14%

AppendixLO1