07. True or False? Rational investors should simultaneously seek to maximize return and minimize risk. However, this is simply not possible in reality. a. True b. False 08. True or False? The cost of equity a company faces is simply the rate of return shareholders demand to own its shares. a. True b. False 09. True or False? The Weighted-Average Cost of Capital (WACC) should be calculated using the book values of debt and equity to compute the relative weights of each source of capital. a. True b. False 10. True or False? Among the eight portfolios considered in the International Diversification application, the most desirable one is the one with the most binding constraints. a. True b. False