Suppose that a stock has fallen in price on a given day. Which of the following would be an example of a discount rate explanation for the observed price movement?

1. Investors perceive the stock to have more exposure to macroeconomic shocks
2. The firm loses a major patent lawsuit, which reduces their likely profits for the next decade
3. A change in sentiment causes investors to irrationally push down the price of the stock
4. The systematic risk of the stock has decreased