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 O4) 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 O2) 5.5 percent O 3) 6.5 percent 4) 7.5 percent Question 21 (4 points) Listen According to the working capital management, the operating cycle starts when and ends when 1) Inventory is purchased; inventory is sold O2) Inventory is purchased; the supplier of the inventory is paid O3) Inventory is purchased; payment is received for the sale of that inventory 4) The sale of inventory occurs; payment is received for the sale of that inventory Question 22 (4 points) Listen Kennesaw Corp. has cost of goods sold of $52,850 and sales of $73,280. If the average accounts payable balance is $8,200 and the average inventory is $11,050, what is the inventory period? 1) 63.14 days 2) 68.57 days 03) 71.06 days 04) 76.32 days