Suppose there are two independent economic factors, M, and My. 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 Beta on M2 Expected Return (6) 1.6 2.5 -0.7 40 10 2.4 What is the expected return-beta relationship in this economy? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. BP1 Expected return-beta relationship E(IP) - 6.00 4.75 10.56 BP2