Problem 10-4 Suppose that there are two independent economic factors, F and F2. The risk-free rate is 5%, and all stocks have independent firm specific components with a standard deviation of 35%. Portfolios A and Bare both well-diversified with the following properties: Expected Return Beta on F1 Beta on F2 Portfolio 25% 1.1 1.5 22% 2.0 -0.15 What is the expected return-beta relationship in this economy? Calculate the risk-free rate, rf and the factor risk premiums, RP and RP2. to complete the equation below. (Do not round intermediate calculations. Round your answers to two decimal places.) Erp) rf+(BP1 RP) (BP2RP2 5.00 % rf RP1 % RP2 %