With regard to the Capital Asset Pricing Model (CAPM), which of the following statements is INCORRECT?

1) The Beta of the Market Portfolio may be greater or less than 1, depending on the Expected Returns

2) Securities that fall below the Security Market Line are suboptimal, all else equal

3)CAPM suggests that the higher the risk, the greater the Expected Return

4) For any given security, its Expected Return minus the Risk-Free Rate equals the product of its Beta and the Market Risk Premium