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UUD=9.3%: G-9.0% QUESTION 7 The following table provides the correlation among Telstra, Australian stock market index (ASX200), and the world market index, together with the

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UUD=9.3%: G-9.0% QUESTION 7 The following table provides the correlation among Telstra, Australian stock market index (ASX200), and the world market index, together with the standard deviation (SD) of returns. The risk-free rate is 5%. What is the world beta of Telstra? Please select the most suitable option Telstra 1 Correlation ASX200 World 0.5 1 0.75 1 Telstra ASX200 World 0.8 SD(96) 18 15 10 a. 1.20 6.0.90 0.75 Od.0.96 QUESTION 8 Suppose you are an US investor and you conduct the following transaction by borrowing $1,000,000 at the start of each year and investing in the AUD for one year, then you covert back to USD at the end of that year. One-year interest rates, the exchange rate between AUD and USD. and one-vear forward rate are provided below between 2001 and 2004. One vear interest rates in the Save All Answers Click Save and Submit to save and submit. Click Save All Answers to save all answers

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