Ohlin is evaluating the expected performance of two common stocks, Western Exports, Inc., and Dinner Foods, Inc. The risk-free rate is 5 percent, the expected return on the market is 12 percent, and the betas of two stocks are 1.1 and 0.8, respectively. Ohlins own forecasts of the returns on the two stocks are 13.00 percent for Western Exports, and 10.00 percent for Dinner Foods. Required: a) Calculate the required return for each stock. b) Is each stock undervalued, fairly valued, or overvalued?