Please rate the following statement as "TRUE" of "FALSE":

"The key underlying assumption of the WACC is that the CAPM holds. Thus, the WACC model implicitly assumes that: (1) all risk that matters is systematic (market driven) in nature (2) and all assets have zero alphas, and thus no opportunity for superior risk-adjusted returns. Yet, we still apply the WACC to value a firm's fair stock price, which would be a nonsensical exercise to perform if we truly believed all firms are always perfectly priced and have zero alpha opportunity".