Analysis of Returns Using the SML Would Indicate That

Multiple Choice

Analysis of returns using the SML would indicate that:

A) as betas increase,the expected return decreases.
B) the required return for all securities can be expressed as the risk free rate minus a premium for risk.
C) if beta is positive a negative correlation exists between market risk and the risk free rate.
D) if the beta is 2.0,twice the market risk premium must be earned.