under/over valued stock a manager believes his firm will earn a 11.50 percent return next year. his firm has a beta of 1.40, the expected return on the market is 9.0 percent, and the risk-free rate is 4.0 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. multiple choice 16.600%, over-valued 11.00%, under-valued 11.00%, over-valued 16.600%, under-valued