Landon Stevens is evaluating the expected performance of two common stocks, Furhman Labs, Incorporated, and Garten Testing, Incorporated. The risk$-$free rate is $4\mathrm{.}0$ percent, the expected return on the market is $13\mathrm{.}4$ percent, and the betas of the two stocks are $1\mathrm{.}2$ and $0\mathrm{.}9,$ respectively. Landon$$s own forecasts of the returns on the two stocks are $15\mathrm{.}70$ percent for Furhman Labs and $12\mathrm{.}40$ percent for Garten.

Calculate the required return for each stock. Is each stock undervalued, fairly valued, or overvalued?