Which of the following statement is FALSE? Generally speaking, investors from all countries exhibit home bias. An MNC can face a higher cost of capital than a domestic firm if the MNC is highly exposed to exchange rate risk or country risk. If a firm generates sales from all over the world, the firm's revenue may be more stable because it will not be highly influenced by a single economy. There is a negative relation between home bias and the cost of capital. If the United States is your home country and if you have zero home bias, then you should invest 20% of your money in global stocks if the US equity market is 80% of the global equity market.