Question: 26. The table below presents the correlation coefficient between the returns of Company A's stock, its local stock market and the world portfolio. What is

26. The table below presents the correlation coefficient between the returns

26. The table below presents the correlation coefficient between the returns of Company A's stock, its local stock market and the world portfolio. What is company A's cost of capital if markets were fully integrated? The risk free rate is 4.52%. Correlation Coefficients ( SD(%) R(%) Company. A Local Markt World Company A Local Market World 0.95 1.00 0.77 21.35 0.81 17.29 16.73 1.00 14.00 13.55 1.00 a. 15.09% b. 18.81% c. 71.55% d. 54.19% e. None of the above

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