An all-equity firm is considering the following projects:

Project	Beta			IRR
W		.55			10.0	%
X		.90			10.5
Y		1.10			14.0
Z		1.81			17.0

The T-bill rate is 5 percent, and the expected return on the market is 12 percent. a. Compared with the firm's 12 percent cost of capital, Project W has a (Click to select) lower higher expected return, Project X has a (Click to select) higher lower expected return, Project Y has a (Click to select) higher lower expected return, and Project Z has a (Click to select) lower higher expected return. b. Project W should be (Click to select) accepted rejected , Project X should be (Click to select) accepted rejected , Project Y should be (Click to select) accepted rejected , and Project Z should be (Click to select) accepted rejected . c. If the firm's overall cost of capital were used as a hurdle rate, Project W would be (Click to select) correctly rejected correctly accepted incorrectly accepted incorrectly rejected , Project X would be (Click to select) incorrectly accepted incorrectly rejected correctly rejected correctly accepted , Project Y would be (Click to select) correctly rejected incorrectly rejected incorrectly accepted correctly accepted , and Project Z would be (Click to select) incorrectly rejected correctly accepted correctly rejected incorrectly accepted .