An all-equity firm is considering the following projects:

Project	Beta	IRR
W	.87		10.2	%
X	.75		10.7
Y	1.39		14.2
Z	1.50		17.2

The T-bill rate is 5.2 percent, and the expected return on the market is 12.2 percent.
a.	Which projects have a higher/lower expected return than the firms 12.2 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______		.