Question: Use the CAPM model to compute the expected return on the Twitter stock. Annual average return on S&P 500: 15% 1-year US Treasury bond yield:

Use the CAPM model to compute the expected return on the Twitter stock.

Annual average return on S&P 500: 15%

1-year US Treasury bond yield: 2%

Twitter beta: 0.6

Market risk premium: 13%

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