Answer for Risk appropriate level of return should be a formula.

1. Calculate the risk appropriate level of return. 2. Determine whether the stock is undervalued or overvalued Undervalued/Overvalued Stock - Excel ?- FILE HOME INSERT PAGE LAYOUTFORMULAS DATA REVIEW VIEW Sign In Arial Paste r u Alignment Number Conditional Format asCell Cells Editing - Formatting TableStyles' ClipboardE Font 016 A B A manager believes his firm will earn a 16.50 percent return next year. His firm has a beta of 64, the expected return on the market is 14.40 percent, and the risk-free rate is 5.40 percent Compute the return the firm should earn given its level of risk. Determine whether the manager is saying the firm is undervalued or overvalued Expected return next year Firm beta Expected return on the market Risk-free rate 16.50% 0.64 14.40% 5.40% 10 12 Compute the expected return and determine whether the manager is saying the firm is undervalued or overvalued. (Do not round intermediate calculations and round your 13 14 15 16 17 Risk appropriate level of return Undervalued, overvalued, or fairly valued Sheet1 + 10096 Attempt(s) 3/3 Hint