a manager believes his firm will earn a return of 20.80 percent next year. his firm has a beta of 1.75, the expected return on the market is 12.40 percent, and the risk-free rate is 2.40 percent. compute the return the firm should earn given its level of risk. note: round your answer to 2 decimal places. determine whether the manager is saying the firm is undervalued or overvalued.