Which of the following statements is FALSE?
O A common assumption is that a project has the same risk as the firm.
O Because the risk that determines expected returns in unsystematic risk, which is measured by beta, the cost of a capital for an investment is the expected return available on securities with the same beta.
O The Capital Asset Pricing Model (CAPM) is the most important method for estimating the cost of capital that is used in practice.
O To determine a project's cost of capital we need to estimate its beta.