Suppose there are two independent economic factors, M, and M2. The risk-free rate is 6%, and all stocks have independent firm- specific components with a standard deviation of 50%. Portfolios A and B are both well diversified. Portfolio Beta on 1 1.6 2.4 Beta on M2 2.5 -0.7 Expected Return (*) 40 10 What is the expected return-beta relationship in this economy? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected return-beta relationship (P) - BP1 PP2