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Question 1 (3 pts) Which of the two statements A and B is correct? NB: If you think the two statements are correct, you should

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Question 1 (3 pts) Which of the two statements A and B is correct? NB: If you think the two statements are correct, you should answer C, if you think the two statements are not correct, you should answer D. A - The cost of capital (COC) for a firm is the opportunity cost the firm must bear for raising the money necessary for the required investments. B - When considering an investment project, investors expect to be given as much return (on average) as the return they could get from investments of similar risk; this average return corresponds to the cost of capital which should be used to study this investment project. C - Both statements are correct. D - None of these two statements are correct

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