Suppose there are two independent economic factors, My 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 Beta on Mi 1.6 2.2 Beta on M2 2.3 -0.6 Expected Return (%) 38 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) = % + L B P1+ BP2