Question: please show in Excel. Also, please show all formulas used for the equations, thank you! 7. Suppose there are two independent economic factors, Fl and

please show in Excel. Also, please show all formulas used for the equations, thank you!

7. Suppose there are two independent economic factors, Fl and F2. The risk-free rate is 6%, and all stocks have independent firm specific components with a standard deviation of 45%. Portfolios A and B are both well-defined with the following properties. Portfolio A: Beta on F1 - 1.5, Beta on F2 = 2.0, Expected Return - 31% Portfolio B: Beta on F1 = 2,2, Beta on F2 = -0.2. Expected Return = 27% Use this data to determine the expected return-beta relationship in this economy

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