Suppose there are two independent economic factors, Mand M2. The risk-free rate is 7%, and all stocks have independent firm- specific components with a standard deviation of 51%. Portfolios A and B are both well diversified. Portfolio A B Beta on M 1.6 2.3 Beta on M2 2.4 Expected Return (8) 30 11 -0.7 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. 7.00 % Expected return-beta relationship E(TP) = 3.88 X BP1 + 7.00 BP2