Question: Q1 : True or false: The most important characteristic in determining the expected return of a well-diversified portfolio is the variance of the individual assets

Q1: True or false: The most important characteristic in determining the expected return of a well-diversified portfolio is the variance of the individual assets in the portfolio. Explain.

Q2: In calculating the WACC, if you had to use book values for either debt or equity, which would you choose? Why?

Please answer BOTH questions thoroughly and dont copy and paste, looking for orignal answers only!

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