Which of the following statements is false in a Modigliani-Miller world? Capital structure does not affect the cost of capital Higher loverage increases the cost of equity Higher loverage does not affect the WACC Higher leverage does not affect the cost of equity Assets A and B have identical betas and standard deviations equal to 0% and 10%, respectively. Which one of the following statements is false? Asset A is a risk free asset The beta of asset B is equal to zero The two assets have the same expected retum Asset B carries both diversifiable risk and systematic risk