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Stock Y has a beta of 1.35 and an expected return of 15.0 percent. Stock Z has a beta of .80 and an expected return

Stock Y has a beta of 1.35 and an expected return of 15.0 percent. Stock Z has a beta of .80 and an expected return of 11.8 percent. If the risk-free rate is 5.30 percent and the market risk premium is 7.80 percent, are these stocks overvalued or undervalued?

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