An all-equity firm is considering the following projects:

Project	Beta			IRR
W		.52			10.3	%
X		.93			10.8
Y		1.07			14.3
Z		1.53			17.3

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

a. Compared with the firms 12.3 percent cost of capital, Project W has a ________ expected return, Project X has a _______ expected return, and Project Y has a _____ expected return, and Project Z has a ______ expected return.

b. Project W should be _______, Project X should be ______, Project Y should be _______, and Project Z should be _________.

c. 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 _______.