Assume that you have been provided with the following firm data: risk$-$free rate $=2\%,$ market risk premium $=6\mathrm{.}55\%,$ and beta $=1\mathrm{.}05.$ What is the cost of equity from retained earnings based on the CAPM approach?

Group of answer choices

$8\mathrm{.}88\%$

$8\mathrm{.}72\%$

$9\mathrm{.}14\%$

$9\mathrm{.}75\%$