An all-equity firm is considering the following projects:

Project	Beta			IRR
W		.67			9.5	%
X		.74			10.6
Y		1.37			14.1
Z		1.48			17.1

The T-bill rate is 5.1 percent, and the expected return on the market is 12.1 percent.

a.	Compared with the firm's 12.1 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.	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