O'Brien Inc. has the following data: rRF $=5\mathrm{.}00\%$; RPM $=6\mathrm{.}00\%$; and b $=0\mathrm{.}80.$ What is the firm's cost of equity from retained earnings based on the CAPM?

Question $2$ options:

$9\mathrm{.}20\%$

$6\mathrm{.}90\%$

$9\mathrm{.}8\%$

$11\mathrm{.}41\%$