FFC Portfolio Average monthly returns are a follows:

Factor Portfolio Average monthly returns Average Monthly Returns

Mkt $-$ r$\_$f $0\mathrm{.}61$

SMB $0\mathrm{.}25$

HML $0\mathrm{.}38$

PR$1$YR $0\mathrm{.}70$

You are considering making an investment in a project in the fast food industry and you believe that the project has the same level of non$-$diversifiable risk as investing in McDonald's stock. Your estimate of the four factor betas are:

Factor Beta estimate

Mkt $0\mathrm{.}687$

SMB $0\mathrm{.}299$

HML $-0\mathrm{.}156$

PR$1$YR $0\mathrm{.}123$

Using these estimates, and the fact that the monthly risk$-$free rate is $0\mathrm{.}125\%,$ what is your cost of capital?