The Capital Asset Pricing Model (CAPM) Assumes Which of the Following

Multiple Choice

The capital asset pricing model (CAPM) assumes which of the following?
I. A risk-free asset has no systematic risk.
II. Beta is a reliable estimate of total risk.
III. The reward-to-risk ratio is constant.
IV. The market rate of return can be approximated.

A) I and III only
B) II and IV only
C) I, III, and IV only
D) II, III, and IV only
E) I, II, III, and IV