The standard deviation: 1) measures risk relative to the market portfolio. 2) primarily is affected by how far above or below the expected value the actual value can be and how likely those values are to occur. 3) shows the risk per unit of return. 4) all of the above are correct. What is the best measure of market risk according to the Capital Asset Pricing Model (CAPM)? CAPM: Ki = krf + (km - Krf)bi 1) standard deviation (total risk) 2) beta (systematic risk) 3) variance (total risk) 4) coefficient of variation (risk per unit of return)