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The stock market data is given in the following table. The above table provides the correlations among Telmex, a telephone or communication company located in

The stock market data is given in the following table.
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 (?bar(R)).
The risk-free rate is 4%.
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.
Equity cost
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