Suppose firms X$,$ Y and Z have the expected returns and betas shown below:

Company Expected Return Beta

Firm X

$8\mathrm{.}7\%$

$0\mathrm{.}48$

Firm Y

$10\mathrm{.}9\%$

$1\mathrm{.}05$

Firm Z

$13\mathrm{.}0\%$

$1\mathrm{.}64$

The expected market return is $10\mathrm{.}3\%$ and the risk$-$free rate is currently $4\mathrm{.}9\%.$

Complete the following statements so that they are correct.

$1.$ Firm X is $($Undervalued$,$correctly value or overvalued$)$ and Firm Z is $($Undervalued$,$correctly value or overvalued$)$

$2.$ Investors should $($Buy or sell$)$ Firm X and $($Buy of sell$)$ Firm Z$.$

$3.$ By how much do the returns of Firm Z need to be adjusted to be priced efficiently? To be priced efficiently, the returns of Firm Z need to adjust by

$\%($Please round to $2$ decimal places$)$