Compute the return firm should earn given its level of risk

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Reference no: EM131839727

A manager believes his firm will earn a 23.80 percent return 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.

Reference no: EM131839727

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