Which of the following statements are consistent with a problem associated with the uncritical use of WACC by conglomerate companies in assessing new projects?

a) WACC may overpenalise high-risk projects by setting a hurdle rate that exceeds the market required rate of return for projects with that risk profile.

b) WACC may underpenalise low-risk projects by setting a hurdle rate that exceeds the market required rate of return for projects with that risk profile.

c) Over time the continued inappropriate use of WACC as a benchmark rate is likely to result in a decrease in the average risk of the companys assets.

d) More than one of the above statements.

e) None of the above statements.