The common stock of Alpha Manufacturers has a beta of $1\mathrm{.}19$ and a current expected return of $16\mathrm{.}7$ percent. The risk$-$free rate of return is $4\mathrm{.}3$ percent and the market rate of return is $12\mathrm{.}1$ percent.

This stock is underpriced because it$$s expected rate of return is currently higher the required rate of return of $\_\_\_\_\_\_\_$ percent.