on 29 The cost of debt increases relative to the investor's required return due to flotation costs, but decreases relative to the investor's required return due to the tax deductibility of interest red Select one: d out of O True e False ag question - - n 28 A rational investor will always prefer an investment with a lower standard deviation of returns, because such investments are less risky. ed Select one: out of 0 a True g question C b. False 24 For a well-diversified investor, an investment with an expected return of 10% with a standard deviation of 3% dominates an investment with an expected return of 10% with a standard deviation of 5%. out of Select one: a. False question b. True