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11) (8 points) Use the following data to answer questions (a)-(d). Correlation Coefficients Worldwide Tea UK World SD Worldwide 1.00 0.80 0.60 .20 ? Tea

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11) (8 points) Use the following data to answer questions (a)-(d). Correlation Coefficients Worldwide Tea UK World SD Worldwide 1.00 0.80 0.60 .20 ? Tea UK 1.00 0.80 .18 .15 World 1.00 .15 .11 b) (2 points) Suppose that the British stock market is segmented from the rest of the world. Using the CAPM and risk-free rate of 4%, estimate the equity cost of capital for Worldwide Tea Ltd. R

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