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The table below provides the correlations among Green, a telephone/communication company located in Mexico, the Mexico stock market index, and the world market index, together
The table below provides the correlations among Green, a telephone/communication company located in Mexico, the Mexico stock market index, and the world market index, together with the standard deviations of returns and the expected returns. The risk-free rate is 5%. Based on the stock market data given in the following table, compute Greens world beta.
| Green | Mexico | World | Standard deviations of returns (%) | Expected returns (%) |
Green | 1.00 | .90 | 0.60 | 20 | ? |
Mexico |
| 1.00 | 0.80 | 18 | 14 |
World |
|
| 1.00 | 15 | 12 |
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