Suppose that there are two independent economic factors, F1 and F2. The risk-free rate is 6%, and all stocks have independent firm- specific components with a standard deviation of 36%. Portfolios A and B are both well-diversified with the following properties: Expected Portfolio Beta on F1 Beta on F2 Return A 1.2 B 2.1 1.6 -0.16 26% 23% What is the expected return-beta relationship in this economy? Calculate the risk-free rate, rf, and the factor risk premiums, RP1 and RP2, to complete the equation below. (Do not round intermediate calculations. Round your answers to two decimal places.) E(rp) = rf + (Bp1 x RP1) + (Pp2 * RP2) rf % RP1 % RP2 % E