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Stock Y has a beta of 1.55 and an expected return of 15.1 percent. Stock Z has a beta of .90 and an expected return

Stock Y has a beta of 1.55 and an expected return of 15.1 percent. Stock Z has a beta of .90 and an expected return of 11.2 percent. If the risk-free rate is 4.65 percent and the market risk premium is 7.15 percent, are these stocks overvalued or undervalued?

A) Stock Y:

B) Stock Z:

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