An all-equity firm is considering the projects shown below. The treasury bond rate is 4% and the market risk premium is 6%. If the firm uses its current firm-wide cost of capital of 11% to decide whether to accept or reject each project, which projects will the firm incorrectly accept or reject?

Project

Forecasted Return

Beta

A

8.5%

0.6

B

9.0%

1.0

C

13.5%

1.5

D

14.0%

1.8

Group of answer choices

Projects A and B

Project A and D

Projects A, B, and C

Projects A, C, and D

Projects B, C, and D