Suppose there are two independent economic factors, M1 and M2. The risk-free rate is 5%, and all stocks have independent firm-specific components with a standard deviation of 48%. Portfolios A and B are both well diversified. Portfolio A B Beta on Mi Beta on M2 Expected Return (%) 1.6 2.3 38 2.2 -0.6 8 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(P) = BP1+ elationship in this economy? ations. Round your answers % + BP1 + BP2