Suppose there are two independent economic factors, M₁ and M₂. The risk-free rate is 4%, and all stocks have independent firm-specific components with a standard deviation of 41%. Portfolios Aand B are both well diversified.

Portfolio	Beta on M1	Beta on M2	Expected Return (%)
A	1.8	2.3	31
B	2.2	-0.5	9
What is the expected returnbeta relationship in this economy? (Do not round intermediate calculations. Round your answers to 2 decimal places.)