Suppose that there are two independent economic factors, Fi and F2. The risk-free rate is 10%, and all stocks have independent firm-specific components with a standard deviation of 40%. Portfolios A and B are both well-diversified with the following properties: Portfolio A Beta on Fi 1.6 2.5 Beta on F2 2.0 -0.20 Expected Return 30% 25% B 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 * RP2) rf RP1 % % % RP2