am Question 9 (of 12) value: 8.34 points Problem 10-20 Under-/Overvalued Stock (LG10-3) A manager believes his firm will earn a 13.80 percent return next year. His firm has a beta of 1.39, the expected return on the market is 11.60 percent, and the risk-free rate is 3.60 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 undervalied or overvalued Undervalued Overvalued Type here to search Pa fy