The following passage is from Qualcomm Inc. annual filing (10-K) with the Securities and Exchange Commission. The management essentially describes three business segments for the firm.

We are organized on the basis of products and services and have three reportable segments. We conduct business primarily through our QCT (Qualcomm CDMA Technologies) semiconductor business and our QTL (Qualcomm Technology Licensing) licensing business. QCT develops and supplies integrated circuits (also known as chips or chipsets) and system software based on CDMA, OFDMA and other technologies for use in mobile devices, wireless networks, devices used in IoT, broadband gateway equipment, consumer electronic devices and automotive telematics and infotainment systems. QTL grants licenses to use portions of our intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products. Our QSI (Qualcomm Strategic Initiatives) reportable segment makes strategic investments. We also have nonreportable segments, including our cyber security solutions (formerly Qualcomm Government Technologies or QGOV), mobile health, small cells and other wireless technology and service initiatives.

Please ignore the third segment, QSI (Qualcomm Strategic Initiatives) in answering the following questions:

• How would you describe the risk characteristics of Qualcomms business segments? You may state your response by indicating which devision would have higher risk in relation to the other and explain why.
• How relevant is the weighted average cost of capital for the entire firm in evaluating projects involving QCT or QTL segments? Explain.
• What would happen if all Qualcomm managers (regardless of business segments in which they make decisions) are asked to evaluate projects using the cost of capital of QTL segment? Explain.