Suppose the domestic U S beta of IBM is 1 0, that is Beta 1 0, and that the expected return on the U S market portfolio is r 12 percent, and that the U S T bill rate is 6 percent If the world beta measure of IBM is Beta 0 80 then we can say 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 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 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 None of the above

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Suppose the domestic U.S. beta of IBM is 1.0, that is Beta=1.0, and that the expected return on the U.S. market portfolio is r =

Suppose the domestic U.S. beta of IBM is 1.0, that is Beta=1.0, and that the expected return on the U.S. market portfolio is r = 12 percent, and that the U.S. T-bill rate is 6 percent. If the world beta measure of IBM is Beta = 0.80 then we can say

		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.
		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.
		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.
		None of the above