CFA Problem 2. Wilson is now evaluating the expected performance of two common stocks. Furman Labs Inc. and Garten Testing Inc. He has gathered the following information: . The risk-free rate is 5% The expected return on the market portfolio is 11.5% The heta of Furhman stock is 1.5. The beta of Garten stock is 8 Based on his own analysis, Wilson's forecasts of the returns on the two stocks are 13.25% for Furhman stock and 11.355 for Garten stock. Calculate the required rate of return for Furman Labs stock and for Garten Testing stock. Indicate whether each stock is undervalued, fairly valued, or overvalued