Correlation Coefficients

	Telmex	Mexico	World	SD (%)	E(R) (%)
Telmex	1.00	0.83	0.37	16	?
Mexico		1.00	0.54	15.6	14.6
World			1.00	11.2	11.7

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 E(R). The risk-free rate is 4.4%. Suppose that Telmex shares trade in the NYSE. Using the CAPM paradigm, estimate the equity cost of capital of Telmex (XX.XX%)