Suppose 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 55%. The following are well- diversified portfolios: Portfolio Beta on F1 Beta on F2 Expected Return 1.7 2.2 33% B 2.7 -0.22 30% Critically analyse how this economy operates? Work on the expected return-beta relationship