You are considering investing in a new project. Suppose the risk$-$free rate of return $($RF$)$ is $4\%$

and the required rate of return on the market $(R(Rm))$ is $8\%.$

a$.$ Write down the Security Market Line.

b$.$ Suppose this project has a corporate beta of $0\mathrm{.}8.$ What does this say about this project?

c$.$ What is the minimum rate of return that this new project $($with corporate beta of $0\mathrm{.}8)$

must be expected to return for you to invest in it$?$ Interpret your results.