urgent and focus on the option

1. The capital asset pricing model (CAPM) assumes which of the following?

   I. A risk-free asset has zero total risk.

   II. Beta is a reliable estimate of systematic risk.

   III. There is no proxy for the market rate of return.

   IV. The reward-to-risk ratio is constant.

   		I and II
   		I, II and III
   		II, III and IV
   		I, II and IV
   		I, III and IV