With diversification it is possible (select one): a. to reduce the risk to systematic risks.

b. that the return of the portfolio will be higher than the return of the most profitable investment in the portfolio.

c.the coefficient of variance of the protfolio will be higher than the coefficient of variance of the highest risk investment

d. All of the above is true.

Which statement is TRUE regarding WACC? (select one):

a. Interest payments after loans increase the taxable income while the cost of equity has no impact on income.

b. The cost of bonds decreases the taxable income while the cost of equity does not influence the taxable income.

c. The cost of bonds increases the taxable income while the cost of equity decreases the taxable income.

d. The cost of bonds decreases the taxable income while the cost of equity increases the taxable income