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The stock market data given by the following table. Correlation coefficients Telmex Mexico World Telmex...

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The stock market data given by the following table. Correlation coefficients Telmex Mexico World Telmex 1.00 0.90 0.60 Mexico 1.00 0.75 World 1.80 R (8) SD(%) 18 15 10 ? 14 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 6%. 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. (Enter your answer as a percent rounded to 2 decimal places.) Equity cost %

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