The $$ is used as a discount rate in valuing future cash flows from an asset, and is the $$ level of expected return required by the party investing in that asset $($i$.$e$.,$ the party who will receive the benefit of those future cash flows$).$ If this percentage is higher than the investor's expected return for the asset, the asset will appear to be $.$ The difference between an asset's expected return and its required return is the asset's $$ Assuming the investor's value estimate is more accurate than the market's estimate $($i$.$e$.,$ the market price$),$ the investor's $$ comprises the required rate of return and the return from convergence of price to value. The book illustrated this $($in section $2\mathrm{.}4$ of the chapter$)$ with Toyota's American Depositary Receipts priced at $ $$ and intrinsically valued at $ This revealed an undervaluation of $$ percent and, if the price were expected to converge to value in exactly one year, an investor would earn percent.