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not sure which one is false Which of the following statements is FALSE? Select one: O a. The relative proportions of debt, equity, and other

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Which of the following statements is FALSE? Select one: O a. The relative proportions of debt, equity, and other securities that a firm has outstanding constitute its capital structure. b. We can evaluate the relationship between risk and return more formally by computing the sensitivity of each security's return to the systematic risk of the economy. O c. The most common choices are financing through equity alone and financing through a combination of debt and equity d. The project's NPV represents the value to the new investors of the firm created by the project. Oe. When corporations raise funds from outside investors, they must choose which type of security to raise money from O f. Leverage increases the risk of equity even when there is no risk that the firm will default O g. Investors in levered equity require a higher expected return to compensate for its increased risk. Notes

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