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

The table below presents the correlation coefficient between the returns of Company

The table below presents the correlation coefficient between the returns of Company A's stock, its local stock market and the world portifolio. What is company A's cost of capital if markets are segmented? The risk free rate is 4.46%. Correlation Coefficients (p) Company A Local Market World SD (%) R (%) Company A Local Market 1.00 0.81 0.64 19.54 ? 1.00 0.67 15.44 16.94 World 1.00 12.20 13.38

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