Question: 1. True/ False ? a) Diversification reduces the market risk of a portfolio. b) For a given level of expected returns, the primary goal of

1. True/ False ?

a) Diversification reduces the market risk of a portfolio.

b) For a given level of expected returns, the primary goal of investors is to minimize the beta of their portfolio.

c) In an MM world, WACC equals the return on assets.

d) After-tax WACC should be used as a discount rate for a firms average project.

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