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Question 7 4p Use the information in the following table. Correlation Coefficients Stansfield England World SD (%) ER (%) Stansfield 1.00 0,90 0.50 20 2
Question 7 4p Use the information in the following table. Correlation Coefficients Stansfield England World SD (%) ER (%) Stansfield 1.00 0,90 0.50 20 2 England 1.00 0.70 18 World 1.00 15 12 Suppose that the British stock market is integrated with the rest of the world and Stansfield Company has made its shares tradable internationally via cross-listing on the NYSE. Using the CAPM and a risk-free rate of 6%, estimate the equity cost of capital for Stansfield 14% 10% 12% 11%
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