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Apple recently had a stock split, so I decided to buy a few shares of Apple stock. As of today, Apple's beta is 1.28, the

Apple recently had a stock split, so I decided to buy a few shares of Apple stock. As of today, Apple's beta is 1.28, the treasury yield is around 1.42%, and the market risk premium is 5.6% (Rudden, 2020). What is my expected return on Apple stock? Please explain your work.

Economic State Probability Sony McDonald's
Recession 50% 5% 6.00%
Normal 30% 7.69% 5.28%
Expansion 20% 15% 5.80%

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