Rosli is analysing the expected performance of two common stocks, LBS Bina and Eco World. Rosli has gathered the following information:

• Kadar bebas risiko adalah 5%/The risk-free rate is 5%.
• Portofolio pasaran yang dijangkakan pulangan adalah 15%/ Market portfolio expected return is 15%.
• Beta LBS Bina adalah 1.4/ LBS Binas beta is 1.4.
• Beta Eco World ialEco Worlds beta is 0.9.

Based on his own analysis, Roslis forecasts of the rate of returns on the two stocks are 12% for LBS Bina stock and 15% for Eco World stock. Calculate the required rate of return for LBS