Firm C has five new products that it must choose to expand its business. The firm's weighted average cost of capital (WACC) has been 17%. The projects are of equal risk, betas (Bs) of 1.7. The risk-free rate is 7% and the market return is expected to be 12%. The five projects are expected to earn return as follows:

Project V : 19%

Project W : 14%

Project X: 18%

Project Y: 17%

Project Z: 15%

Why required rate of return according to the capital asset pricing model is different from the firm's WACC?