Assume that the CAPM holds and that your firm is entirely equity financed. You are considering a project that you expect to return $21\%.$ You have found a company that has identical risks to the project you are considering. That company$$s returns have a standard deviation of $27\%$ and a correlation with the market returns of $0\mathrm{.}5.$ The market$$s expected returns are $14\%$ with a standard deviation of $12\%.$ The risk free rate is $4\%.$

a$.$ What is the projects beta?

b$.$ Given this risk level, what should project$$s expected return be$?$

c$.$ Should you take the project, why or why not?