Which of the Following Is True of the Modigliani-Miller Theorem

Which of the following is true of the Modigliani-Miller theorem in the absence of taxes and transaction costs?

A) Hedging is unlikely to improve a firm's value if it does no more than reduce the variance of its future cash flows.
B) To improve a firm's value,hedging must increase expected cash flows.
C) If hedging choices do not affect cash flows from real assets,hedging decisions do not affect firm values.
D) To improve a firm's value,hedging must decrease expected cash flows.