Question: 2) ABC Corp. has a beta with respect to the S&P500 of 1.4, and a beta with respect to the global portfolio of 0.7. If

2) ABC Corp. has a beta with respect to the S&P500 of 1.4, and a beta with respect to the global portfolio of 0.7. If the expected return on the global portfolio is 10.7%, the expected return on the S&P500 is 17.2%, and the riskless rate is 2.9%, what cost of equity should ABC use in their calculations if most of their investors consider assets from around the world?

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