Question
The stock market data given by the following table. Correlation Coefficients Telmex Mexico World SD(%) R R (%) Telmex 1.00 1.50 1.00 18 ? Mexico
The stock market data given by the following table. Correlation Coefficients Telmex Mexico World SD(%) R R (%) Telmex 1.00 1.50 1.00 18 ? Mexico 1.00 1.20 15 14 World 1.00 10 12 The above table provides the correlations among Telmex, a telephone/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 ( R R ). The risk-free rate is 4%. Compute the domestic country beta of Telmex as well as its world beta. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
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