Under/Over Valued Stock A manager believes his firm will earn a 11.65 percent return next year. His firm has a beta of 1.41, the expected return on the market is 9.1 percent, and the risk-free rate is 4.1 percent. Compute the return the firm should earn given its level of risk and determine whether the manager is saying the firm is under-valued or over-valued. 11.15%, under-valued 16.931%, over-valued 16.931%, under-valued 11.15%, over-valued