Medvedev Minerals Inc $($MMI$),$ an all$-$equity firm, is considering the following projects:

MMI has a Beta of $1\mathrm{.}15$; the T$-$bill rate is $4\%$; and the expected return on the market is $9\mathrm{.}5\%.$

a$)$ Which projects have a higher expected return than the firm's weighted average cost of capital?

b$)$ What return should each project earn based on its level of risk? Which projects should now be selected?

c$)$ Which projects would be incorrectly accepted or rejected if the firm's overall cost of capital were used as a hurdle

$($discount$)$ rate?