Mr$.$ Alif Aziz, an investor, has given information to you as an investment analysis regarding the information on stocks Kuntum Berhad, Kenanga Berhad and Kemala Berhad:

$\backslash$table$[[,$Kuntum,Kenanga,Kemala$],[$Expected return $(\%),20,21,10],[$Standard deviation $(\%),12,10,10],[$Beta$,1\mathrm{.}8,2\mathrm{.}2,0\mathrm{.}8]]$

Given that the risk$-$free rate of return is $3\%$ and the expected market return is $12\%.$

From the above information, you are required to answer the following questions.

a$.$ Calculate the required rate of return for each stock.

$(3$ Marks$)$

b$.$ Based on your calculation in part $($a$),$ and assuming that Mr Aliff Aziz is an investor with a well$-$diversified portfolio, recommend which stock to Mr$.$ Aliff Aziz to add to his portfolio. Explain your answer.

$(4$ Marks$)$

c$.$ Based on your calculation in part $($a$),$ and if Mr$.$ Aliff Aziz will only invest into ONE stock, which stock should you recommend to Mr Aliff Aziz to invest in$?$ Justify your answer.

$(3$ Marks$)$