Which of the following relationships are correct?

1. Risk Premium = Expected return - Risk free rate

2. Total Risk - Systematic risk = Unsystematic risk

3. If (Ra) is return on asset A and Ri is the risk-free rate, then, the slope of the SML = (E(Ra)-Ri / Beta A

4. CAPM beta measures systematic risk and sigma (standard deviation of returns) measure total risk. Therefore sigma > beta

Select one:

A. 1,2,3 and 4

B. 1 and 3 only

C. 1, 3 and 4 only

D. 1, 2 and 3 only

E 1 and 2 only