(rE with investments) A company is deciding whether to issue stock to raise money for an investment project which has the same risk as the market and an expected return of 15%. If the risk-free rate is 5% and the expected return on the market is 12%, which of the following is correct?

a. The company should not proceed with the investment.

b. The company should proceed with the investment regardless of the company’s beta.

c. The company should proceed with the investment unless the company’s beta is greater than 1.25.

d. The company should proceed with the investment unless the company’s beta is less than 1.25.