Which of the following statements is/are TRUE about private firms?

I. The owners of private businesses are usually more diversified than owners of publicly traded companies

II. Using the stock beta to arrive at the cost of equity of a private firm will underestimate the firm's cost of equity

III. Private businesses are usually characterized by more conflicts of interest than publicly traded companies

IV. The cost of debt for private firms is higher than the cost of debt for publicly traded firms

Question 17 options:

	III only
	I only
	I and III only
	II and IV only