Cyclical Company is projected to have a return of $32\%$ if the economy is very strong, while it is expected to have a return of $4\%$ if the economy is weak.$$ Counter Company is expected to have a return of $2\%$ if the economy is very strong, while it is expected to have a return of $10\%$ if the economy is very weak.$$ The S&P $500$ Index is expected to have a return of $13\%$ in a very strong economy, while it is projected to have a return of $-3\%$ in a weak economy.

Assume each scenario is equally likely. If the current T$-$Bill yield is $1\mathrm{.}20\%$ and the historic Market Risk Premium is $7\mathrm{.}00\%,$ what does CAPM predict for the expected return of Cyclical Company?