he stock market data given by the following table. Correlation Coefficients Telmex Mexico World SD(%) R⎯⎯⎯�¯ (%) Telmex 1.00 1.20 0.90 24 ? Mexico 1.00 1.05 20 14 World 1.00 15 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¯ ). The risk-free rate is 8%. Suppose now that Telmex has made its shares tradable internationally via crosslisting on the NYSE. Again using the CAPM paradigm, estimate Telmex’s equity cost of capital. (Do not round intermediate calculations. Round your answer as a percent rounded to 2 decimal places.
he stock market data given by the following table. Correlation Coefficients Telmex Mexico World SD(%) R⎯⎯⎯�¯ (%) Telmex 1.00 1.20 0.90 24 ? Mexico 1.00 1.05 20 14 World 1.00 15 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¯ ). The risk-free rate is 8%. Suppose now that Telmex has made its shares tradable internationally via crosslisting on the NYSE. Again using the CAPM paradigm, estimate Telmex’s equity cost of capital. (Do not round intermediate calculations. Round your answer as a percent rounded to 2 decimal places.
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter3: Data Visualization
Section: Chapter Questions
Problem 10P: The file Fortune500 contains data for profits and market capitalizations from a recent sample of...
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The stock market data given by the following table.
| Correlation Coefficients | |||||
| Telmex | Mexico | World | SD(%) | R⎯⎯⎯�¯ (%) | |
| Telmex | 1.00 | 1.20 | 0.90 | 24 | ? |
| Mexico | 1.00 | 1.05 | 20 | 14 | |
| World | 1.00 | 15 | 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¯ ). The risk-free rate is 8%.
Suppose now that Telmex has made its shares tradable internationally via crosslisting on the NYSE. Again using the
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