ABCs share earns a return of 18% and has a beta of 1.3. XYZ's share has a beta of 0.80 and earns a return of 9.5%. If a risk-free asset yields a return of 5% and the market return is 11.75%, which company's share is undervalued, and also compute the undervalued share's expected return on equity?

Group of answer choices

XYZ's share, 10.40%

XYZ's share, 9.5%

ABC's share, 18%

ABC's share, 13.78%