TRUE OR FALSE... WITH EXPLANATION PLEASE

1. In the presence of diversification benefits, when we combine two assets together into a portfolio, the systematic risk of the portfolio will be less than the weighted average systematic risk of the individual assets in the portfolio. 2. The twin advantages with using the IRR method as opposed to the NPV method for project evaluation is that you don't need to worry about what an appropriate risk- adjusted discount rate might be for the project and you will always get the correct answer to the investment decision. 3. When a division of a company utilizes the NPV technique to assess a project, they should always include any costs associated with running the company's head office allocated to the division