The stock market data given by the following table. Correlation Coefficients Telmex Mexico World SD(%) R (N) Telmex Mexico World 1.00 0.75 0.50 20 ? 1.00 0.60 12 14 1.00 8 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%. 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.) Domestic beta World beta
The stock market data given by the following table. Correlation Coefficients Telmex Mexico World SD(%) R (N) Telmex Mexico World 1.00 0.75 0.50 20 ? 1.00 0.60 12 14 1.00 8 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%. 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.) Domestic beta World beta
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:The stock market data given by the following table.
Correlation Coefficients
Telmex
Mexico
World
Telmex
Mexico World
SD (%)
R (%)
1.00
0.75
0.50
20
?
1.00
0.60
12
14
1.00
8
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%.
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.)
Domestic beta
World beta
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