A well-balanced portfolio is sensitive two 2 factors, GDP and Unemployment. Its GDP beta has a value of -1.6, while its unemployment beta has a value of -0.9. GDP has a long-run expected growth of 10.00% and the long-run unemployment rate is expected to be 10.80%. The risk-free rate is 4.20%. 

Calculate the portfolio's long-run expected return.

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The longrun expected return of a portfolio that is sensitive to various factors can be calculated ... View the full answer