1. Consider a two-factor asset pricing model. Portfolio A has a beta of 1 on factor one and a beta of 2 on factor two. The risk premiums on the factor one and two portfolios are 4% and 5%, respectively. The risk-free rate of return is 2%. The expected return on portfolio A is __________ according to this model.

1. 10%
2. 14%
3. 16%
4. None of the above