Question: Imposing the no-arbitrage condition on a single-factor security market implies which of the following statements? The expected return-beta relationship is maintained for all but a

Imposing the no-arbitrage condition on a single-factor security market implies which of the following statements? The expected return-beta relationship is maintained for all but a small number of well-diversified portfolios. The expected return-beta relationship is maintained for all well-diversified portfolios. The expected return-beta relationship is maintained for all but a small number of individual securities. The expected return-beta relationship is maintained for all individual securities. I and III I and IV II and III II and IV Only I is correct
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