15. Which of the following statements are correct concerning the security market line tSML} approach to determining the cost of equity for a rm?

please explain 3 and 4, should SML considers both past and future information? Why reward-to-risk ration is constant?

15. Which of the following statements are correct concerning the security market linetSML} approach to determining the cost of equity for a firm? I. The SML approach considers the amount of unsystematic risk associated with a firm.I]. The SMI. approach can be applied to more firms than the dividend growth model can.111. The SML approach considers only funue information. IV. The SML approach assumes the reward-to—rislr ratio is constant. a. I and 111 only 5. 11 and IV only c. III and IV only d. I. II. and [11 only e. I. II. [IL and 1V