Suppose there are two independent economic factors, My and M2. The risk-free rate is 4%, and all stocks have independent firm- specific components with a standard deviation of 41%. Portfolios A and B are both well diversified. Portfolio Beta on Mi 1.8 2.2 A Beta on M2 2.3 -0.5 Expected Return (%) 31 9 B What is the expected return-beta relationship in this economy? (Do not round intermediate calculations. Round your answers to 2 decimal places.) X Answer is complete but not entirely correct. 7.00 Expected return-beta relationship E(rP) = 4.20 BP1 8.45 BP2 + +