Stock Y has a beta of 1.30 and an expected return of 14.6 percent. Stock Z has a beta of 0.75 and an expected return of 11.3 percent.

Required:

If the risk-free rate is 5.00 percent and the market risk premium is 7.50 percent, are these stocks correctly priced? in other words is stock Y undervalued, overvalued, or correctly price, is stock X undervalued, overvalued ,or correctly priced?