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Stock Y has a beta of 1.30 and an expected return of 13.5 percent. Stock Z has a beta of .75 and an expected return

Stock Y has a beta of 1.30 and an expected return of 13.5 percent. Stock Z has a beta of .75 and an expected return of 10.6 percent. If the risk-free rate is 4.75 percent and the market risk premium is 7.25 percent, are these stocks overvalued or undervalued?

stock Y = ______

stock Z = ______

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