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 M1 Beta on M2 Expected Return (%) 1.6 2.5 2.4 -0.7 B 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 retum-beta relationship E(P) BPT BP2