An all-equity firm is considering the following projects:

Project	Beta			IRR
W		.70			9.9	%
X		.77			10.9
Y		1.43			14.4
Z		1.54			17.4

The T-bill rate is 5.4 percent, and the expected return on the market is 12.4 percent. a. Compared with the firm's 12.4 percent cost of capital, Project W has a (Click to select)higherlower 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. Project W should be (Click to select)rejectedaccepted , Project X should be (Click to select)rejectedaccepted , Project Y should be (Click to select)rejectedaccepted , and Project Z should be (Click to select)rejectedaccepted . c. If the firm's overall cost of capital were used as a hurdle rate, Project W would be (Click to select)incorrectly rejectedincorrectly acceptedcorrectly rejectedcorrectly accepted , Project X would be (Click to select)correctly acceptedincorrectly acceptedincorrectly rejectedcorrectly rejected , Project Y would be (Click to select)correctly acceptedcorrectly rejectedincorrectly acceptedincorrectly rejected , and Project Z would be (Click to select)correctly rejectedincorrectly rejectedcorrectly acceptedincorrectly accepted .