Assume a firm uses a constant WACC to select investment projects rather than adjusting the projects for risk. If so, the firm will tend to:（）
A. reject profitable, low-risk projects and reject unprofitable, high-risk projects.
B. accept profitable, low-risk projects and reject unprofitable, high-risk projects.
C. reject profitable, low-risk projects and accept unprofitable, high-risk projects.
参考答案：C
解析：
The firm will reject profitable, low-risk projects because it will use a hurdle rate that is too high. The firm should lower the required rate of return for lower risk projects. The firm will accept unprofitable, high-risk projects because the hurdle rate of return used will be too low relative to the risk of the project. The firm should increase the required rate of return for high-risk projects.
