Consider a well-diversifired portfolio, A, in a two-factor economy. The risk-free-rate is 3.5%, the risk premium on the first factor portfolio is 4%, and the risk premium on the second factor portfolio is 6%. If portfolio A has a beta of 0.60 on the first factor and 1.80 on the second factor, what is its expected return?

a. 15.19%

b. 13.05%

c. 16.70%

d. 7.0%

e. 8.0%