9 value: 8.34 points Problem 10-20 Under-/Overvalued Stock (LG10-3) A manager believes his firm will earn a 17.00 percent return next year. His firm has a beta of 1.29, the expected return on the market is 15.00 percent, and the risk-free rate is 8.00 percent. Compute the return the firm should earn given its level of risk. Round your answer to 2 decimal places.) Required return Determine whether the manager is saying the firm is undervalued or overvalued Undervalued Hints References eBook & Resources Hint#1