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Suppose the Domestic U

Question 69

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Suppose the domestic U.S. beta of IBM is 1.0, that is Suppose the domestic U.S. beta of IBM is 1.0, that is and that the expected return on the U.S. market portfolio is percent, and that the U.S. T-bill rate is 6 percent. If the world beta measure of IBM is then we can say A) That if the U.S. markets are fully integrated with the rest of the world, IBM's cost of equity capital would be 20% lower than if U.S. markets were segmented. B) That if the U.S. markets are fully integrated with the rest of the world, IBM's cost of equity capital would be 10% lower than if U.S. markets were segmented. C) That if the U.S. markets are fully integrated with the rest of the world, IBM's cost of equity capital would be one-third lower than if U.S. markets were segmented. D) None of the above and that the expected return on the U.S. market portfolio is Suppose the domestic U.S. beta of IBM is 1.0, that is and that the expected return on the U.S. market portfolio is percent, and that the U.S. T-bill rate is 6 percent. If the world beta measure of IBM is then we can say A) That if the U.S. markets are fully integrated with the rest of the world, IBM's cost of equity capital would be 20% lower than if U.S. markets were segmented. B) That if the U.S. markets are fully integrated with the rest of the world, IBM's cost of equity capital would be 10% lower than if U.S. markets were segmented. C) That if the U.S. markets are fully integrated with the rest of the world, IBM's cost of equity capital would be one-third lower than if U.S. markets were segmented. D) None of the above percent, and that the U.S. T-bill rate is 6 percent. If the world beta measure of IBM is Suppose the domestic U.S. beta of IBM is 1.0, that is and that the expected return on the U.S. market portfolio is percent, and that the U.S. T-bill rate is 6 percent. If the world beta measure of IBM is then we can say A) That if the U.S. markets are fully integrated with the rest of the world, IBM's cost of equity capital would be 20% lower than if U.S. markets were segmented. B) That if the U.S. markets are fully integrated with the rest of the world, IBM's cost of equity capital would be 10% lower than if U.S. markets were segmented. C) That if the U.S. markets are fully integrated with the rest of the world, IBM's cost of equity capital would be one-third lower than if U.S. markets were segmented. D) None of the above then we can say


A) That if the U.S. markets are fully integrated with the rest of the world, IBM's cost of equity capital would be 20% lower than if U.S. markets were segmented.
B) That if the U.S. markets are fully integrated with the rest of the world, IBM's cost of equity capital would be 10% lower than if U.S. markets were segmented.
C) That if the U.S. markets are fully integrated with the rest of the world, IBM's cost of equity capital would be one-third lower than if U.S. markets were segmented.
D) None of the above

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