Question: 1. Why is it important to use market values rather than book values when determining the weighted-average cost of capital? ( 5%) 2. Calculate the

1. Why is it important to use market values rather than book values when determining the weighted-average cost of capital? ( 5%) 2. Calculate the expected rate of return for the following portfolio, based on a Treasury bill yield of 4% and an expected market return of 13% : (Show your work) (8%)

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