Question 19 (4 points) Listen Among the following events, the best example of systematic risk is: 1) reduced demand for dairy products 2) the Federal reserve tapering quantitative easing to reduce money supply 3) A couple of CEOs and CFOs were indicted by the SEC for financial fraud 4) Consumers are spending less on movie theaters. Question 20 (4 points) Listen A security has an expected return of 14% and a beta of 1.2. The risk-free rate is 5%. What is the market risk premium? 1) 4.5 percent 2) 5.5 percent 3) 6.5 percent 4) 7.5 percent