.Chapter 13 Risk, Cost of Capital, and Capital Budgeting Answer Key Multiple Choice Questions1.The weighted average of the firms costs of equity, preferred stock, and after tax debt is the:A.reward to risk ratio for the firm.B.expected capital gains yield for the stock.C.expected capital gains yield for the firm.D.portfolio beta for the firm.E.weighted average cost of capital (WACC).Difficulty level: EasyTopic: WACCType: DEFINITIONS2.If the CAP