A manager believes his firm will earn a return of $15\mathrm{.}00$ percent next

year. His firm has a beta of $1\mathrm{.}21,$ the expected return on the market is

$13\mathrm{.}00$ percent, and the risk$-$free rate is $6\mathrm{.}00$ percent.

Compute the return the firm should earn given its level of risk.

$($Round your answer to $2$ decimal places.$)$

Determine whether the manager is saying the firm is undervalued or

overvalued.