A manager believes his firm will earn a 17.9 percent return next year. His firm has a beta of 1.69, the expected return on the market is 15.9 percent, and the risk-free rate is 5.9 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 overvalued. 22.8%, over-valued 27.871%, over-valued 27.871%, under-valued 22.8%, under-valued