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Calculate the cost of equity (rounded to nearest decimal) under the Fama and French 3 factor model where the risk free rate is 2%, and
Calculate the cost of equity (rounded to nearest decimal) under the Fama and French 3 factor model where the risk free rate is 2%, and the S&P return is 7%. The equity beta is 1.1 and the HML beta is 1.5 and the size beta is 0.2. The HML premium is 5% while the size premium is 3%.
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