Evidence from retail investors$$ portfolios indicates that... $($choose the correct alternative based on the lecture material$)$

A$.$

most investors$$ portfolios are below the Capital Market Line.

B$.$

most investors could not reduce the riskiness of their portfolio by diversifying it more

C$.$

investors who trade more generally earn higher portfolio returns before transaction costs.

D$.$

investors who trade more generally earn higher portfolio returns after transaction costs.

firm$$s cost of equity... $($choose the correct alternative$)$

A$.$

is equal to the cost of debt

B$.$

lower than the cost of the debt

C$.$

is the Weighted Average Cost of Capital $($WACC$)$

D$.$

is higher than its cost of debt