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You have the following assets available to you: Riskless debt 3.8% Portfolio of small cap stocks 9.0% Portfolio of large cap stocks 7.3% Portfolio of

You have the following assets available to you:

Riskless debt 3.8%

Portfolio of small cap stocks 9.0%

Portfolio of large cap stocks 7.3%

Portfolio of growth stocks 13.3%

Portfolio of value stocks 8.8%

S&P500 index fund 9.9%

What is the cost of equity for a firm with a market beta of 3.4, a SMB beta of 1.9, and a HML beta of 2.4? 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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