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The following information is available for three shares listed on the JSE: ShareExpected return ( % ) Expected standard deviation ( % ) Expected beta

The following information is available for three shares listed on the JSE: ShareExpected return (%)Expected standard deviation (%)Expected beta1Jampak17.023.01.32Colder14.528.30.83Zappi18.025.31.7 The risk-free rate of return is 10% while the expected return on the market portfolio is 15% Required:4.1. Based on the expectations in the table above, comment on the pricing of the shares by indicating which shares are under-, over-, and correctly priced. In addition, you should recommend which shares should be bought. (10 marks)

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