An all-equity firm is considering the following projects:

Project	Beta	IRR
W	.52		10.3	%
X	.93		10.8
Y	1.07		14.3
Z	1.75		17.3

The T-bill rate is 5.3 percent, and the expected return on the market is 12.3 percent. a. Which projects have a higher/lower expected return than the firms 12.3 percent cost of capital? Project W has a (select - lower or higher) expected return, Project X has a (Click to select)lowerhigher expected return, Project Y has a (Click to select)higherlower expected return, and Project Z has a (Click to select)higherlower expected return. b. Which projects should be accepted? Project W should be (Click to select)rejected accepted, Project X should be (Click to select)rejected accepted, Project Y should be (Click to select)accepted rejected, and Project Z should be (Click to select)accepted rejected. 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? Project W would be (Click to select)incorrectly rejected, incorrectly accepted, correctly accepted, correctly rejected, Project X would be (Click to select)correctly rejected, incorrectly rejected, incorrectly accepted, correctly accepted, Project Y would be (Click to select)correctly accepted, correctly rejected, incorrectly rejected, incorrectly accepted, and Project Z would be (Click to select)correctly accepted, correctly rejected, incorrectly rejected, incorrectly accepted.