Question: The stock market data given by the following table. Correlation Coefficients Telmex Mexico World Telmex 1.00 Mexico World SD (%) R (%) 0.75 0.50
The stock market data given by the following table. Correlation Coefficients Telmex Mexico World Telmex 1.00 Mexico World SD (%) R (%) 0.75 0.50 20 ? 1.00 0.60 12 14 1.00 8 12 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 (R). The risk-free rate is 8%. Compute the domestic country beta of Telmex as well as its world beta. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Domestic beta World beta
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