Problem $17\mathrm{.}2$ The stock market data is given in the following table. Correlation Coefficients$$TelmexMexicoWorldSD$(\%)$R$(\%)$R$(\%)$Telmex$1\mathrm{.}000\mathrm{.}900\mathrm{.}6018?$Mexico$1\mathrm{.}000\mathrm{.}751514$World$1\mathrm{.}001012$ The above table provides the correlations among Telmex, a telephone or communication company located in Mexico, the Mexico stock market index, and the world market index, together with the standard deviations $($SD$)$ of returns and the expected returns $($ R$$R$).$ The risk$-$free rate is $5\%.$ Required: Suppose the Mexican stock market is segmented from the rest of the world. Using the CAPM paradigm, estimate the equity cost of capital of Telmex. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.