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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

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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 12.0 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 14.30 percent for Furhman Labs and 11.00 percent for Garten. o. Calculate the required return for each stock. Note: Do not round intermediote calculations. Enter your answers as o percent rounded to 2 decimal ploces. b. Is each stock undervalued, fairly valued, or overvalued? Fuithman Labs Undervalued Overvalued Fair valued Garten Testing Undervalued Overvalued

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