Landon Stevens is evaluating the expected performance of two common stocks, Furhman Labs, Incorporated, and Garten Testing, Incorporated. The risk-free rate is 4.0 percent, the expected return on the market is 13.5 percent, and the betas of the two stocks are 1.2 and 0.9 , respectively. Landon's own forecasts of the returns on the two stocks are 15.80 percent for Furhman Labs and 12.50 percent for Garten. a. Calculate the required return for each stock. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. b. Is each stock undervalued, fairly valued, or overvalued? Furhman Labs Undervalued Overvalued Fair valued Garten Testing Undervalued