Question: The stock market data given by the following table. Correlation Coefficients Telmex Mexico World SD (%) RR (%) Telmex 1.00 0.75 0.50 20 ? Mexico
The stock market data given by the following table.
| Correlation Coefficients | |||||
| Telmex | Mexico | World | SD(%) | RR (%) | |
| Telmex | 1.00 | 0.75 | 0.50 | 20 | ? |
| Mexico | 1.00 | 0.60 | 12 | 14 | |
| World | 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 ( RR ). The risk-free rate is 6%.
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.)
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