A well-balanced portfolio is sensitive two 2 factors, GDP and Unemployment. Its GDP beta has a value of 0.1, while its unemployment beta has a value of -1.7. GDP has a long-run expected growth of 7.40% and the long-run unemployment rate is expected to be 12.60%. Next year, the actual value that GDP will grow at is 6.10%, and unemployment's actual value will be 9.00%. The risk-free rate is 3.70%. Assuming the error term on the factor model is equal to 0, use a factor model to calculate the portfolio's actual return next year. (HINT: You will also need to use the APT)