Suppose that there are two independent economic factors, and F2 The risk free rate is 9%, and all stocks have independent firm-specific components with a standard deviation of 39% Portfolios A and B are both well-diversified with the following properties Portfolio Beta on 2 Beta on F 1.5 2.4 Expected Return 29% 1.9 -0.19 24% 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.) E(rp) - rp. (Bp1 *RP)(Bp2 * RP2) If % RP1 % RP2 % Activate Wind