If All Securities Plot on the Security Market Line Then

Multiple Choice

If all securities plot on the security market line then:

A) Each security is being paid the same amount of risk premium.
B) The reward-to-risk ratio is constant and equal to the market risk premium.
C) Every security has a reward-to-risk ratio equal to its beta.
D) The slope of the security market line must be greater than the reward-to-risk ratio.
E) The reward-to-risk ratio is constant and equal to 1.0.