An all equity firm is considering the projects shown below. The T bills rate is 4 % and the market risk premium is 7 percent. If the firm uses its current WACC of 12% to evaluate these projects, which project is any will be incorrectly accepted?

Project A , Expected return 8 % , beta 0.5

Project B , Expected return 19 , beta 1.2

Project C , Expected return 13 , beta 1.4

Project D , Expected return 17, beta 1.6