Which statement is false?

Select one:

WACC is the cost of capital items weighted with the proportion of capital items.

WACC is the minimum return that the firm requires from its new investments.

WACC is independent from the equity multiplier.

WACC is the incremental cost of obtaining additional capital.

For market portfolio it is true, that

Select one:

a) it has only diversiable risk

b) it contains risk free and risky assets.

c) it has only common risk.

d) it has no market risk.

With diversification the risks

Select one:

a) can be reduced to the level of unsystematic risk.

b) can be reduced to the level of systematic risk.

c) can be reduced to the level of the risk-free rate.

d) can be reduced to the level of covariance