An all-equity firm is considering the following projects:

Project	Beta			IRR
W		.53			10.2	%
X		.92			10.7
Y		1.08			14.2
Z		1.52			17.2

The T-bill rate is 5.2 percent, and the expected return on the market is 12.2 percent.

a. Compared with the firm's 12.2 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. Note: The answer will be either higher or lower.

b. Project W should be , Project X should be , Project Y should be , and Project Z should be . Note: The answer choices will be either accepted or rejected.

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 . Note: The answer choices will be either correctly accepted, corectly rejected, incorrectly rejected.