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 5 percent, estimate the equity cost of capital for Stansfield. Correlation Coefficients Stansfield England World SD(%) R % Stansfield 1.00 0.90 0.60 20 ? England 1.00 0.80 18 14 World 1.00 15 12