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Compute the return the firm

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A manager believes his firm will earn a 12.98 percent return next year. His firm has a beta of 1.38, the expected return on the market is 11.10 percent, and the risk-free rate is 5.10 percent.

Compute the return the firm should earn given its level of risk. (Round your answer to 2 decimal places.)

Reference no: EM131863445

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