Firms can list on exchanges that have only investors from within the country or on exchanges that attract investors from around the world. Which of the following are reasons that a firms cost of capital is usually lower on exchanges that attract investors from around the world? Circle all that are correct.

a. The systematic risk associated with an exchange that attracts investors from around the world is less than the systematic risk associated with an exchange that attracts investors from a single national market.

b. The idiosyncratic risk associated with an exchange that attracts investors from around the world is less than the idiosyncratic risk associated with an exchange that attracts investors from a single national market.

c. Increased regulations associated with exchanges that attract investors from around the world assure investors that they will be treated more fairly than at national exchanges thus investors are more willing to invest in the more heavily regulated global exchanges.

d. Increased regulations associated with exchanges that attract investors from around the world actually increase the cost of obtaining capital from these exchanges; therefore, the cost of capital is usually less at exchanges that only attract investors from within one country.