An analyst estimates the forward price-earnings of the S&P 500 to be 18.5 and the current 10-year U.S. Treasury bond rate is 6 percent. According to the Fed model, the market: I. is undervalued because the earnings yield on the market is 5.4%. II. is undervalued because the inverse of the Treasury is 16.67. III. is overvalued because the earnings yield on the market is 5.4%. IV. is overvalued because the inverse of the Treasury is 16.67. III and IV. III only. I and II. I only