Suppose the expected return on the market portfolio equals 10%. The current risk-free rate is 4%. The following table provides information regarding current and next years forecast of share price for four companies. None of these companies are expected to pay any dividends. The last column of the table gives you the value of Beta of each company (i) Based on the Capital Asset Pricing Model (CAPM) rate each of the companys share as overpriced, under-priced or fairly priced. Explain the reasoning behind your rating. (Marks: 4) (ii) From the data provided in the table above, can we conclude that the standard deviation of Woolworth share returns must be equal to the standard deviation of the market portfolio? Explain

.bagga cheese share current price 70$ expected price $73.50 beta 0.8

car sales.com current price 35 expected price 42 beta 1.6

Nab share cureent price 40 expected price 48 beta 2

woolworths currennt price 30 expected 33 beta is 1.0