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A manager believes his firm will earn a 14 percent return next year. His firm has a beta of 1.2, the expected return on the

A manager believes his firm will earn a 14 percent return next year. His firm has a beta of 1.2, the expected return on the market is 11 percent, and the risk-free rate is 5 percent. Compute the return the firm should earn given its level of risk. (Round your answer to 2 decimal places.)

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