Stock Y has a beta of 1.8 and Stock Z has a beta of 0.5. If the risk-free rate is 4 percent and the market risk premium is 7 percent, what required expected return is predicted by the CAPM for each of these stocks? If the CAPM is correct, are these stocks approximately correctly priced if Stock Y has an expected return of 16 percent and Stock Z has an expected return of 8 percent? (Note: they are correctly priced if the expected returns predicted by the CAPM are close to the actual expected return.)