Suppose I believe a Macroeconomics multifactor asset pricing model is a correct description of the risk-return relationship for equity returns. They decide to put 30% in stock X and 70% in Stock Y. The model takes the following form:

Ri = aj + b1 Inflation + b2GDP What is the expected return of this portfolio according to this model? b1 b2 Stock 0.7 Intercept 0.55 0.25 1.15 0.88 Y 1.2 2.35 0 1.05 O 0.95 O 0.73 0.34