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James owns a two-stock portfolio that invests in Blue Llama Mining Company (BLM) and Hungry Whale Electronics (HWE). Three- quarters of lames's portfolio value consists of BLM's shares, and the balance consists of HWE's shares. Each stock's expected return for the next year will depend on forecasted market conditions. The expected returns from the stocks in different market conditions are detailed in the following table: Market Condition Probability of Occurrence Blue Llama Mining Hungry Whale Electronics Strong 0.50 15% 2196 Normal 0.25 9% 12% Weak 0.25 -12% -15% Calculate expected returns for the individual stocks in James's portfolio as well as the expected rate of retom of the entire portfolio over the three possible market conditions next year. D The expected rate of return on Blue Lima Mining's stock over the next year is The expected rate of return on Harry Whale Electronics's stock over the next year is The expected rate of return on James's portfolio over the next year is The expected returns for James's portfolio were calculated based on the possible conditions in the market. Such conditions will vary from time to time, and tor each condition there will be a specific outcome. These probabilities and outcomes can be represented in the form of actions probability distribution graph, For example, the continuous probability distributions of rates of return on stocks for two different companies are shown on the following graph James owns a two-stock portfolio that invests in Blue Llama Mining Company (BLM) and Hun quarters of James's portfolio value consists of BLM's shares, and the balance consists of HWE Each stock's expected return for the next year will depend on forecasted market conditions. TI different market conditions are detailed in the following table: Market Condition Hungry Wh Probability of Occurrence 0.50 Blue Llama Mining 15% Strong Normal 0.25 9% Weak 0.25 -12% Calculate expected returns for the individual stocks in James's portfolio as well as the expected rate om possible market conditions next year. The expected rate of return on Blue Llama Mining's stock over the next year is The expected rate of return on Hungry Whale Electronics's stock over the next year is The expected rate of return on James's portfolio over the next year is 12.09% mars The expected returns for James's portfolio were calculated based on three possible condid 6.34% time, and for each condition there will be a specific outcome. These probabilities and outd 9.75% probability distribution graph. 11.02% For example, the continuous probability distributions of rates of return on stocks for two mpani be rer James owns a two-stock portfolio that invests in Blue Llama Mining Company (BL quarters of James's portfolio value consists of BLM's shares, and the balance cons Each stock's expected return for the next year will depend on forecasted market different market conditions are detailed in the following table: Market Condition Probability of Occurrence Blue Llama Mining 15% Strong 0.50 Normal 0.25 9% Weak 0.25 -12% Calculate expected returns for the individual stocks in James's portfolio as well as the e possible market conditions next year. The expected rate of return on Blue Llama Mining's stock over the next year is The expected rate of return on Hungry Whale Electronics's stock over the next year is The expected rate of return on James's portfolio over the next year is 10.13% The expected returns for James's portfolio were calculated based on thre Fondit time, and for each condition there will be a specific outcome. These probl 9.00% oute probability distribution graph. 7.50% For example, the continuous probability distributions of rates of return on 6.3896 two d PROBABILITY DENSITY Company G Company H -40 -20 0 20 40 60 RATE OF RETURN (Percent) Based on the graph's information, which company's returns exhibit the greater risk? Company H Company G ch o