Suppose that government of Pakistan is considering an investment tax credit. i. How would this policy affect national saving, domestic investment, net capital outflow, the real interest rate, the real exchange rate, and the trade balance? Use graphs to explain your answer.  ii. The representatives of several large exporter firms oppose the policy. Why might that be the case? Explain in words.

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Factor Models

Many attributes might be related to an asset's risk, including market capitalization (size), dividend yield, growth, price-earnings ratio, etc. The use of these traditional descriptors, however, presents a few problems: