30. Stock X has an expected return of 7% with the correlation of 0.9 with the market return. Stock A is expected to return 17% with the correlation of 0.85 with the market return. The volatilities of stocks X and A are 12% and 20%, respectively. The market's expected return is 10% with the volatility of 15%. the risk-free rate 5%. Which of the following is correct? Stock X Stock A

A) Undervalued. Undervalued. B) Overvalued Undervalued C) Undervalued Overvalued D) Overvalued Overvalued E) Fairly valued Fairly valued Show work