2 Problem 10-4 16.66 points Suppose that there are two independent economic factors, F1 and F2. The risk-free rate is 4%, and all stocks have independent firm- specific components with a standard deviation of 51%. Portfolios A and B are both well-diversified with the following properties: Portfolio A Beta on F1 1.3 Beta on F2 2.1 Expected Return 29% eBook B 3.2 26% 0.21 References What is the expected return-beta relationship in this economy? Calculate the risk-free rate, rf, and the factor risk premiums, RP1 and RP2, to complete the equation below. (Do not round intermediate calculations. Round your answers to two decimal places.) E(rp) = rf + (BP1 * RP1) + (BP2 x RP2) rf % RP1 % RP2 %