A company's beta is $1\mathrm{.}35$ the risk$-$free rate is $5\mathrm{.}5$ percent, and an annualized return of the market is $8\mathrm{.}5$ percent. Which of the following is a company's cost of equity using the capital asset pricing model $($CAPM$)$ approach?

$8\mathrm{.}20\%$

$6\mathrm{.}85\%$

$9\mathrm{.}55\%$