1) If the standard deviation of returns on a share measures the total risk of investing in that share, what is the difference between the standard deviation on returns on the share and the shares beta coefficient?

2) Forecasted return rates can be used as a discount rate to translate future share cash flows in to current share price.

a)If forecasted rate of return is lower than the capm required rate of return, does this indicate that current share price means shares are under or overvalued? Explain your answer

b)Does an over or undervalued situation last indefinitely? Explain your answer