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Suppose there are two independent economic factors. M1 and M2. The risk-free rate is 6%, and all stocks have independent firm-specific components with a standard

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Suppose there are two independent economic factors. M1 and M2. The risk-free rate is 6%, and all stocks have independent firm-specific components with a standard deviation of 58%. Portfolios A and B are both well diversified. Portfolio Beta on M1 Beta on M2 Expected Return (%) 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 E(rp) =

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