A manager believes his firm will earn a 1570 percent return, Ask an Expert

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A manager believes his firm will earn a 15.70 percent return next year. His firm has a beta of 1.79, the expected return on the market is 12.50 percent, and the risk-free rate is 4.50 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. Overvalued Undervalued.

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Financial Management, Finance

Category:- Financial Management
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