An all-equity firm is considering the following projects:

Project	Beta	IRR
W	.64		9.5	%
X	.75		10.6
Y	1.31		14.1
Z	1.42		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?

b.	Which projects should be accepted?

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?

What determines if a project gets incorrectly accepted/reject?