Determine whether the manager is saying the firm

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Reference no: EM131349158

A manager believes his firm will earn a 16.50 percent return next year. His firm has a beta of 1.65, the expected return on the market is 10.70 percent, and the risk-free rate is 4.70 percent. Compute the return the firm should earn given its level of risk. Required return % Determine whether the manager is saying the firm is undervalued or overvalued.

Reference no: EM131349158

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