USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM

Stock	Beta	Current Price	Expected Price	Expected Dividend
X	0.8	$12.50	$13.10	$0.80
Y	1.1	$ 8.25	$ 9.76	$0.20
Z	2.1	$25.70	$30.04	$0.00

Refer to Exhibit 7.4. Which of the following statements is correct?

a. Stocks X, Y, and Z are overvalued.

b. Stocks X and Y are overvalued, and stock Z is undervalued.

c. Stocks X, Y, and Z are undervalued.

d. Stocks X and Y are undervalued, and stock Z is overvalued.

e. Stocks X, Y, and Z are all properly valued.