Which of the following are likely to increase investment expenditure. 1. Low initial capital on projects. 2. A rise in the interest rate. 3. A fall in the interest rate. 4. More favorable business expectations. 5. Less favorable business expectations, Select one: O a 2 and 4 O b. 2. and 5 O c. 3. and 4. O d. 1. and 4 In the first unit of this course, you learned how to use the no arbitrage condition to derive a relationship between marginal product of capital and the user cost of capital. This no-arbitrage principle is quite powerful and can also be applied to understand price/returns of other financial investments like stocks and housing. You have a stock that pays an annual dividend of 1.5$. The current trading price of this stock is 25$ and you expect this price to grow by 4% annually. Applying the no arbitrage condition, find the annual returns of this stock (in % units)