A manager believes his firm will earn a return of 15.70 percent 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. Note: Round your answer to 2 decimal places. Determine whether the manager is saying the firm is undervalued or overvalued. Required return Determine whether the manager is saying the firm is undervalued or overvalued. %