Post explanation please!

4 pts A U.S. firm is interested in acquiring a Malaysian company in the electronics industry. Suppose the U.S. and Malaysian markets are segmented. Let M$ stand for the Malaysian currency, Ringgit. Information relevant to the cost-of-capital calculations are as follows: U.S. Market (S) Malaysian Market (MS 1.00 16% | 8.5% 0.6 | 15% 796 ni The difference in costs of capital in M$ between the two segmented markets suggests that US investors see many Malaysian-specific risks of investment as diversifiable, not requiring a risk premium Malaysian investors see Malaysian-specific risk as systematic and require a risk premium for holding the stock O O Both A and B None of the above