Question 15 (4 points) Listen A security has a beta of 1.5, the expected market return is 12%, and the risk-free rate is 5%. What is the expected return on the security? 1) 14.5 percent O2) 15.5 percent 3) 16.5 percent 4) 17.5 percent Question 16 (4 points) Listen The goal of diversification is to eliminate: 1) firm-specific risk 2) systematic risk 3) effects of beta 4) total risk