An all-equity firm is considering the following projects:

Project	Beta	IRR (%)
W	0.55	10.0
X	0.90	10.5
Y	1.10	14.0
Z	1.50	17.0

The T-bill rate is 5.0 percent and the expected return on the market is 12.0 percent.

Required:

1. Which project/s should be accepted? Use the SML of the project to determine which projects should be accepted.

Type in your answer here. Please adjust the box to accommodate all your workings.

(7 marks)

2. Which project/s should be accepted if the firms overall cost of capital was used as a hurdle rate for all projects? Compare the answers in (a), explain if there is inconsistency.

(3 marks)

Type in your answer here. Please adjust the box to accommodate all your workings.

No more information is given , this is the whole question