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Is this correct for both A and B? An all-equity firm is considering the following projects: Project W Y Z Beta 57 .77 1.27 1.74

Is this correct for both A and B?

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An all-equity firm is considering the following projects: Project W Y Z Beta 57 .77 1.27 1.74 IRR 9.2% 10.3 14.1 17.0 The T-bill rate is 5 percent, and the expected return on the market is 12 percent. a. Which projects have a higher/lower expected return than the firm's 12 percent cost of capital? expected return, Project Y has a higher Project W has a flower expected return, and Project Z has a expected return, Project X has a higher lower expected return b. Which projects should be accepted? Project W should be Project Y should be rejected accepted Project X should be and Project Z should be rejected accepted

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