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You have the following assets available to you: Asset Expected Return Riskless debt 2.7% Portfolio of small cap stocks 11% Portfolio of large cap stocks

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You have the following assets available to you: Asset Expected Return Riskless debt 2.7% Portfolio of small cap stocks 11% Portfolio of large cap stocks 7.3% Portfolio of growth stocks 10.3% Portfolio of value stocks 8.7% S&P500 index fund 9.8% What is the cost of equity for a firm with a market beta of 0.7, a SMB beta of 2, and a HML beta of 2? You may assume this firm has an alpha of zero, Please give your answers to four decimal places - an answer of 9.54% would be represented as 0.0954

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