There are two independent economic factors, Mland M2. The risk-free rate is 5%, and all stocks have independent firm-specific components with a standard deviation of 25%. Portfolios A and B are well diversified. Given the data below, which equation provides the correct pricing model? Portfolio Frp) Beta on M 1.5 1.0 Beta on M2 1.75 0.65 358 208 B Multiple Choice Erp) = 5 + 1.12Bp1 + 11.86Bp2 Erp) = 5 +4.96B P1 + 13.26BP2 Erp) = 5 +3.23B P1+ 8.46Bp2 Erp) = 5 +8.71BP1+ 9.68BP2