Which of the following statements about the security market line SML or the CAPM is TRUE? (choose one)

1.If a company's beta is halved, then its required return will also be halved.

2.If investors become less risk averse, the slope of the Security Market Line will increase.

3.Higher beta stocks have higher required returns.

4.If the risk-free rate rises, then the market risk premium must also rise.

5.Beta is measured by the slope of the security market line.