Suppose Kellogg Cereal has an equity beta of 0.43. If the market risk premium is 5% and the risk free rate is 2%, Kellogg's cost of equity capital is Kellogg's beta being less than 1 implies that the company has risk than the overall market and a threshold for selecting investment projects than a firm with a =1. Kellogg's beta implies that a one percent increase in the market risk premium, will cause a 0.43% in Kellogg's expected return. (a) 3.29%; less; lower; increase (b) 3.29%; more; lower; decrease (c) 4.15%; less; higher; decrease (d) 4.15%; less; lower; increase