At any given point in time, the WACC is similar for all companies in a given country. Which of the following statements helps explain why this is the case?

Group of answer choices

There is very little difference in default risk for all companies in a given country, so the cost of debt, K(d), is similar

Because in the real world, the WACC is independent of a company's capital structure

Both the cost of debt, K(d), and the cost of equity, K(e), using CAPM begin with a country's risk-free rate as a baseline for all companies

By definition, the average beta using the Capital Asset Pricing Model is equal to 1.0 for the country's equity market as a whole