You work for Fly by Night Software Corporation (ticker: FBNS) and are considering whether to develop a new sottware product, The risk of the investment is the same as the risk of the compary. The current risk-free rate of interest is 3% per vear (0.25% per month) and the monthly Fama, French, and Carhart (FFC) factor specifications are as follows: Question: The annual cost of capital calculated using the Fama, French, and Carhart (FFC) Four Factor Model is closest to 0.88% 10.60% 0.97% 11.58% 8.40% If Fly by Night Software's monthly CAPM beta over the same period is 1.28, then Fly by Night Softwaro's annual cost of capital calculated using the Capital Asset Pricing Model (CAPM) is closest to: 12.98% 11.58% 3.83% 1.08% 14.80%