If a firm uses the same company cost of capital for evaluating all projects, which situation(s) will likely occur?

I)The firm will reject good low-risk projects compared to the firm's other assets.

II)The firm will accept poor high-risk projects compared to the firm's other assets.

III)The firm will correctly accept projects with average risk compared to the firm's other assets.

a.

I only

b.

I and II only

c.

I, II, and III

d.

II only