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