Scanlon Inc.$\text{'}$s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: rRF $=4\mathrm{.}10\%$; RPM $=5\mathrm{.}25\%$; and b $=1\mathrm{.}05.$ Based on the CAPM approach, what is the cost of equity from retained earnings?

Group of answer choices

$7\mathrm{.}79\%$

$11\mathrm{.}15\%$

$9\mathrm{.}61\%$

$8\mathrm{.}84\%$

$10\mathrm{.}29\%$