There are two projects, A and B (with the same risk involved), with a rate of return of 10 percent and X percent, respectively, if under normal circumstances, project B is selected. What could be the rate of return of Project B?

Option 1: 7 percent -> At 7%, Project B offers a lower return than Project A (10%), so it would not be selected under normal circumstances.

Option 2: 8 percent -> At 8%, Project B offers a lower return than Project A (10%), so it would not be selected under normal circumstances.

Option 3: 9 percent -> At 9%, Project B offers a lower return than Project A (10%), so it would not be selected under normal circumstances.

Option 4: 12 percent -> At 12%, Project B offers a higher return than Project A (10%), making it the preferred choice when risk levels are equal.

Hence, Option 4: 12 percent -> Since both projects have the same risk level, the rational decision is to select the project with the higher rate of return. For Project B to be selected over Project A (which returns 10%), it must offer a return greater than 10%. Only 12% satisfies this condition. -> correct