Project	Beta	IRR
W	.57	10.0 %
X	.93	10.5
Y	1.13	14.0
Z	1.70	17.0

The T-bill rate is 4.5 percent, and the expected return on the market is 13 percent.

a. Compared with the firm's 12 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.

b. Project W should be __________, Project X should be __________, Project Y should be __________, and Project Z should be __________.

c. If the firm's overall cost of capital were used as a hurdle rate, Project W would be __________, Project X would be __________, Projects Y would be __________, and Project Z would be __________.