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. Given 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 risk is diversifiable, enough is systematic so that it should have a higher return than the market. OB. Yes, higher volatility implies higher risk, so Microsoft is riskier than the market and should therefore have a higher return. O C. No, volatility includes diversifiable risk, and so cannot be used to assess the equity cost of capital. OD. There is not enough information in this problem to answer this question definitively