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 46%. Portfolios A and B are both well-diversified with the following properties: Portfolio A B Beta on F1 2.1 3.0 Beta on F2 2.4 -0.24 Expected Return 35% 30% 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 * RP1) + (Bp2 x RP2) rf % RP1 % RP2 %