An all-equity firm is considering the following projects:

Project	Beta	IRR
W	.58		9.1	%
X	.85		10.5
Y	1.17		14.0
Z	1.79		17.0

The T-bill rate is 5 percent, and the expected return on the market is 12 percent.
a.	Which projects have a higher/lower expected return than the firms 12 percent cost of capital?

b.	Which projects should be accepted?

c.	Which projects will be incorrectly accepted/rejected or correctly accepted/rejected if the firm's overall cost of capital were used as a hurdle rate?