Assume that the risk-free rate of interest is 3% and the expected rate of return on the market is 16%.1 am buying a firm with an expected perpetual cash flow of $3,000 but am unsure of its risk. If I think the beta of the firm is 0.7, when in fact the beta is really 1.4, how much more will I offer for the firm than it is truly worth? (Do not round intermediate calculations. Round your 2 decimal places.)