The resident Economist in the Investment Firm you work for has generated the following expected end-of-year prices for Apple and the market portfolio, conditional on the state of the economy. The market portfolio and Apple are selling for $150 and $40 today.

State of the Economy	Probability	Market Portfolio	Apple Stock
Extreme Growth	0.20	206.25	46.75
Normal Growth	0.50	156.25	52.75
Recession	0.20	112.50	58.00
Depression	0.10	100.00	59.50

Use this information to answer the following questions.

Report your answer as a number (Example 1.0).

What is the expected return of Apple according to the CAPM if the risk-free rate is 2%?