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 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