Consider the following regression model for excess returns on an asset : 2. = a + BemZ+&: d(0,0%) where Z. -R- Rp.2.-Rm - Rp, R is the return on the asset i, Ry is the return on a risk-free asset, Rom is the return on the market portfolio. Which of the following is/are true according to the capital asset pricing model (CAPM)? 1. The basic implication of the CAPM is that the expected return on an asset is linearly related to the expected excess return on the market portfolio II. The CAPM assumes that a, is III. The CAPM tests whether R. is correctly priced IV. The chi-square test squares the alpha to test for the null