Two well-diversified portfolios X and Y are exposed to the systematic risk factors of money supply and interest rate. The risk-free interest rate is 4%. The following data is available:

Risk factor premium for the money supply: 00.5

- Risk factor premium for the interest rate: 0.03

- the factor sensitivities for portfolio X: money = 1.2, interest = 0.7

- the factor sensitivities for portfolio Y: money = 0.6, interest = 1.8