Stock Y has a beta of 1.3 and an expected return of 18.5 percent.Stock Z has a beta of .70 and an expected return of 12.1 percent.If the risk-free rate is 8 percent and the market risk premium is7.5 percent, the reward-to-risk ratios for stocks Y and Z are

andpercent, respectively. Since the SML reward-to-risk ispercent, Stock Y is _______(undervalued,overvalued, or correctly priced) and Stock Z is_______(undervalued, overvalued, or correctly priced).