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The expected return for ABC inc. and XYZ inc. according to equity analysts is 13.75% and 10.5%. If the betas for the two stocks is

The expected return for ABC inc. and XYZ inc. according to equity analysts is 13.75% and 10.5%. If the betas for the two stocks is 1.2 and 0.9 respectively, and the return on the market is 11.5 %. Are the stocks over, under, or fairly valued?

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