The above table provides the correlations among Telmex, a telephone or communication company located in Mexico, the Mexico

stock market index, and the world market index, together with the standard deviations $($SD$)$ of returns and the expected returns $(\frac{?}{\text{b}\text{a}\text{r}}(R)).$

The risk$-$free rate is $6\%.$

Required:

Suppose the Mexican stock market is segmented from the rest of the world. Using the CAPM paradigm, estimate the equity cost of

capital of Telmex.

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.

Answer is complete but not entirely correct.