Use the following three statements to answer this question: 1. According to the Capital Asset Pricing Model (CAPM), a fair-priced security has an alpha of zero. 2. The expected rate of return of a security decreases proportionally with a decrease in the risk-free rate. 3. If BA= 2BB, the required rate of return for stock A (KA) = 2 x required rate of return for stock B (KB) a. 1 and 3 O b. all are correct O c. all are incorrect d. 1 and 2 O e. 1 only Use the following three statements to answer this question: 1. According to the Capital Asset Pricing Model (CAPM), a fair-priced security has an alpha of zero. 2. The expected rate of return of a security decreases proportionally with a decrease in the risk-free rate. 3. If BA= 2BB, the required rate of return for stock A (KA) = 2 x required rate of return for stock B (KB) a. 1 and 3 O b. all are correct O c. all are incorrect d. 1 and 2 O e. 1 only