Assume that the parameters for the APM have been estimated and that there are three factors as follows:

Risk Premium Beta

Factor $14\mathrm{.}0\%-1\mathrm{.}2$

Factor $24\mathrm{.}0\%0\mathrm{.}9$

Factor $31\mathrm{.}5\%1\mathrm{.}1$

If risk free rate is $7\mathrm{.}5\%$ p$.$a$.,$ Calculate cost of equity.