23. The difference between (1) the return earned by an asset with beta = 1.34, and (2) the return earned by a risk-free asset, is referred to as the a. reward-to-risk ratio. b. risk premium. c. beta. d. total return. e. reward for idiosyncratic risk. 24. Which one of the following should earn the most risk premium based on CAPM? a. Market portfolio. b. A stock with a beta of 1.3. c. A portfolio with a negative beta but a positive standard deviation d. U.S. Treasury bills. e. A portfolio with a beta of 1.1. 25. Which one of the following statements is true about the efficient market hypothesis? a. Market is efficient because financial analysts do not want to compete against each other. b. Security prices in efficient markets remain steady as new information becomes available. c. Stock price of a firm in efficient markets reacts randomly to the firm's good news. d. If stock market is efficient, investor cannot persistently make money without bearing risk. e. If a stock market is efficient, investors should not expect to make money in the long run