Ch7 Saved Help Save & Exit Check 9 Suppose there are two independent economic factors, M, and My. The risk-free rate is 5%, and all stocks have independent firm- specific components with a standard deviation of 44%. Portfolios A and B are both well diversified, Portfolio Beta on My Beta on M2 Expected Return (S) 1.5 34 -0.6 12 10 points 1.8 What is the expected return-beta relationship in this economy? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) References Expected return-beta relationship COP) - 5.00% PP1 BP2