Suppose that there are two independent economic factors, Fi and F2. The risk-free rate is 5%, and all stocks have independent firm- specific components with a standard deviation of 54%. Portfolios A and B are both well-diversified with the following properties: Portfolio Beta on Fi 1.6 2.6 Beta on F2 2.0 -0.20 Expected Return 32% 29% 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.) Elrp) = rf+(BPI RP1) +(BP2 * RP2) rf % RP1 % RP2