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 45%. Portfolios A and B are well-diversified portfolios. Please use the following information to find each factor's risk premium and the expected return-beta relationship in this economy. Following is the Portfolio Beta on F1 Beta on F2 Expected Return respectively.

A : Beta of F1: 1.5, Beta on F2: 2.0, Expected return : 31%

B : Beta on F1: 2.2, Beta on F2 : -0.2 , Expected Return: 27%