An all-equity firm is considering the following projects:

Project Beta IRR

W .65 9.5%

X .74 10.7

Y 1.33 14.2

Z 1.44 17.3

The T-bill rate is 5.3 percent, and the expected return on the market is 12.3 percent.

Compared with the firm's 12.3 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.

Project W should be Project Y should be should be Project X should be , and Project Z If the firm's overall cost of capital were used as a hurdle rate, Project W would be Project X would be , and Project Z would be Project Y would be Project W should be Project Y should be should be Project X should be , and Project Z If the firm's overall cost of capital were used as a hurdle rate, Project W would be , Project X would be and Project Z would be Project Y would be