An all-equity firm is considering the following projects:

Project	Beta	IRR
W	.54		10.1	%
X	.91		10.6
Y	1.09		14.1
Z	1.83		17.1

The T-bill rate is 5.1 percent, and the expected return on the market is 12.1 percent. a. Which projects have a higher/lower expected return than the firms 12.1 percent cost of capital? Project W has a

expected return, Project X has a expected return, Project Y has a expected return, and Project Z has a expected return. b. Which projects should be accepted? Project W should be , Project X should be , Project Y should be , and Project Z should be . 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 , Project X would be , Project Y would be , and Project Z would be .