Compute the return the firm should earn given level of risk

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Under/Over Valued Stock A manager believes his firm will earn a 11.65 percent return next year. His firm has a beta of 1.41, the expected return on the market is 9.1 percent, and the risk-free rate is 4.1 percent. Compute the return the firm should earn given its level of risk and determine whether the manager is saying the firm is under-valued or over-valued. 11.15%, under-valued 16.931%, over-valued 16.931%, under-valued 11.15%, over-valued

Reference no: EM131346449

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Compute the return the firm should earn given level of risk : Under/Over Valued Stock A manager believes his firm will earn a 11.65 percent return next year. His firm has a beta of 1.41, the expected return on the market is 9.1 percent, and the risk-free rate is 4.1 percent. Compute the return the firm should e..

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