Imposing the No-Arbitrage Condition on a Single-Factor Security Market Implies

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

A) I and III are correct.
B) I and IV are correct.
C) II and III are correct.
D) II and IV are correct.
E) Only I is correct.