Comment on the following statements:

a) "If you invest in an investment portfolio, the investor will obtain a higher return than investing in a single asset but will also have a higher risk that is calculated through beta"

b) "The weighted average cost of capital represents the shareholder's cost to value an investment and its value depends on the issuance of shares and the debt that has no financial cost. While the company when it finances with equity generates a tax benefit ".

Answer rating: 100% (QA)

a The statement is partially accurate Investing in an investment portfolio can potentially provide a ... View the full answer