Correlation coefficients stansfield england world SD (%) R% stansfield 1.00 0.90 0.60 20 ? england 1.00 0.80 18 14 world 1.00 15 12
Suppose that the British stock market is segmented from the rest of the world. Using the CAPM and a risk-free rate of 5%, estimate the cost of equity for Stansfield.