1. Which one of the factors is not likely to be associated with the large US trade deficit:
Low savings rate in the US
High spending rate, relative to income levels in the US
Low investment opportunity in the US
High value of the US dollar
2. Estimate the required rate of return on a company's stock given the firm's beta of 1.5, a market return of 10%, and a risk-free rate of 4%.
15 percent
16 percent
13 percent
14 percent