The stock market data is given in the following table. Correlation Coefficients Telmex Mexico World SD (%) R (%) Telmex Mexico World 1.00 1.50 1.00 18 ? 1.00 1.20 15 14 1.00 10 12 The above table provides the correlations among Telmex, a telephone or communication company located in Mexico, stock market index, and the world market index, together with the standard deviations (SD) of returns and the expecte The risk-free rate is 6%. Required: actic country beta of Telmex as well as its world beta.
The stock market data is given in the following table. Correlation Coefficients Telmex Mexico World SD (%) R (%) Telmex Mexico World 1.00 1.50 1.00 18 ? 1.00 1.20 15 14 1.00 10 12 The above table provides the correlations among Telmex, a telephone or communication company located in Mexico, stock market index, and the world market index, together with the standard deviations (SD) of returns and the expecte The risk-free rate is 6%. Required: actic country beta of Telmex as well as its 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
Problem 1PS
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Transcribed Image Text:The stock market data is given in the following table.
Correlation Coefficients
Telmex
Mexico
World
SD (%)
R (%)
Telmex
Mexico
World
1.00
1.50
1.00
18
?
1.00
1.20
15
14
1.00
10
12
5
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 (R).
The risk-free rate is 6%.
Required:
Compute the domestic country beta of Telmex as well as its world beta.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Domestic beta
World beta
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