Talarico and Moore has a company policy that states that all projects will be assigned a required return that equals the current weighted average cost of capital (WACC) for the overall firm. Given this policy, which one of the following statements is most apt to be true?

The company tends to accept low risk, low return projects over high risk, high returns projects.

The companys WACC has tended to remain constant over the past several years.

The risk level of the firms operations has increased over the past several years.

The firms lowest risk division has expanded more than the firms other divisions over the past several years.