Suppose the market portfolio has an expected return of 10% and a volatility of 20%, while Microsoft's stock has a volatility of 30%. a. Given its higher volatility, should we expect Microsoft to have an equity cost of capital that is higher than 10%? b, what would have to be true for Microsoft's equity cost of capital to be equal to 10%? a. Gven its higher volatility. Should we expect Microsoft to have an equity cost of capital that is higher than 10%? (Select the best choice below. o A. Yes, although some of Microsoft's nsk is diversifiable, enough is systemato so that it should have a higher return than the market. B. No, volatility ncludes diversifiable nsk, and so cannot be used to assess the equity cost of capital. 0 C. Yes, higher volatility implies higher risk, so Microsoft is riskier than the market and should therefore have a higher return. O D. There is not enough information in this problem to answer this question definitively b, what would have to be true for Microsoet's equity cost of capital to bo equal to 10%? (Select from the drop-down menus ) Microsoft stock would need to have a V that is (Round to two decimal places.)