7 Which of the following statements is (are) true? 1. The market portfolio is a value-weighted portfolio. Its risk premium is proportional to its beta and to the risk aversion of the average investor. 2. The CAPM assumes investors agree on a common input list for security analysis. 3. The capital market line is valid for efficient portfolios and individual assets. 4. The security market line of the CAPM is valid for well-diversified portfolios only. Your choice: 7/25 Qs Statement 3 Statement 4 Statements 1 and 2 Statements 2 and 3 Statement 1 Statement 2