George White is evaluating the expected performance of two common stocks, Foglia Labs Inc. and Garden 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 beta of Foglia stock is 1.5. - The beta of Garden stock is 0.8. Based on his own analysis, White's forecasts of the returns on the two stocks are 13.25% for Foglia stock and 11.25\% for Garden stock. a) Calculate the required rate of return of equilibrium for Foglia Labs stock and for Garden Testing stock. [15 marks] b) Show whether each stock is undervalued, fairly valued, or overvalued. [15 marks] In all your answers, show the calculation's steps and explain the formulas you use. Always justify your answers