22. Which of the following provides the best example of a systematic-risk event? A. A strike by union workers hurts a firm's quarterly earnings. B. Mad Cow disease in Montana hurts local ranchers and buyers of beef. C. The Federal Reserve increases interest rates 50 basis points. D. A senior executive at a firm embezzles $10 million and escapes to South America. E. All of the above 23. Which of the following correlation coefficients will produce the least diversification benefit? A.-0.6 B.-0.3 C.O D. 0.8 E. All produce equal diversification benefits 24. What is the standard deviation of a portfolio of two stocks given the following data: Stock A has a standard deviation of 30%. Stock B has a standard deviation of 18%. The portfolio contains 60% of stock A, and the correlation coefficient between the two stocks is -1. A. 0% B. 10.8% C. 18% D. 24% E. none of the above 25. You buy some shares of a stock on June 30, 2008 for $3,000 and sell it on June 30, 2016 for $7,142. Assume you did not pay any commissions and the stock did not pay any dividends. What is your annual arithmetic average return, your annual geometric average return, and your annual continuously compounded return? Round to the nearest tenth of a percent. a. 17.3%, 10.8%, 11.5% b. 10.8%, 11.5%, 17.3% c. 11.5%, 17.3%, 10.8% d. 17.3%, 11.5%, 10.8% e. None of the above