Stock A has a beta of $1\mathrm{.}19$ and an expected rate of return of $13\mathrm{.}42$ percent. The market risk premium is $8\mathrm{.}2$ percent and the risk$-$free rate is $4\mathrm{.}1$ percent. Which one of the following statements related to Stock $A$ is correct? Hint: compute the reward$-$to$-$risk ratio for stock A$.$

Stock $A$

$1)$ stock A is correctly priced.

$2)$ Stock A is under priced

$3)$ Stores ck i sover priced

$4)$ the answer cannot be determined based on the information provided