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Philips Company's (PC) beta is 2.1. The average market return is 5.75% and the government treasury instrument is 3.10%. Based on Capital Asset Pricing Model

Philips Company's (PC) beta is 2.1. The average market return is 5.75% and the government treasury instrument is 3.10%.

Based on Capital Asset Pricing Model (CAPM), the rate of return of PC is ________%.

The average return on PC's stock is 7.88%. You should buy the stock.

-True

-False

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