GemmaTech is a computer software manufacturer with earnings per share of $0.9 and a stock price of $26. The stock is expected to grow at 29% a year for the next 5 years, and has a beta of 1.8. AutoWorld is an automobile part manufacturer, with earnings per share of $1.6 and a stock price of $43. The stock is expected to grow at 15% a year for the next 5 years, and has a beta of 1.5. You have run a regression of PE/g ratios against betas, using all the companies in the market: PE/g = 2.75 -0.50 * Beta Based on this regression, select from the dropdown list to make Statement 1 and Statement 2 correct. Note: Use the percentage points of growth rate in your calculatigox (if the growth rate is 10%, use 10). Also round the PE ratio to 1 decimal point, i.e. X.X. (fairly-valued, over-valued, under-valued) relative to Statement 1: Gemma Tech is comparable companies' multiples in the market. Statement 2: AutoWorld is (fairly-valued, over-valued, under-valued) relative to comparable companies' multiples in the market