A manager believes his firm will earn a return of 23.80 percent next year. His...
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A manager believes his firm will earn a return of 23.80 percent next year. His firm has a beta of 1.69 , the expected return on the market is 16.30 percent, and the risk-free rate is 6.30 percent. Compute the return the firm should earn given its level of risk. (Round your answer to 2 decimal places.) Determine whether the manager is saying the firm is undervalued or overvalued. undervalued overvalued
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