Required: Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 5% and IR 6%. A stock with a beta of 1 on IP and 0.8 on IR currently is expected to provide a rate of return of 13%. If industrial production actually grows by 6%, While the inflation rate turns out to be 7%, what is your best guess for the rate of return on the stock? (Round your answer to 1 decimal place.) Suppose there are two independent economic factors, M1 and M2. The riskfree rate is 6%, and all stocks have independent firm-specific components with a standard deviation of 58%. Portfolios A and B are both well diversified. Required: What is the expected return-beta relationship in this economy? (Do not roun intermediate calculations. Round your answers to 2 decimal places.)