2. Statistical measures of ntandatone risk circumstances. Ta compute an asaets expected return uncer a range of possiale circuenstances (er thates of nobure), thultiply the anticated retimf expected to result duing each state of nature ty its prebabilty of oceurence. Cansider the fotowing case: Theetrquaftere af Davidy pcrefelia value consists of CCCy shares, and the bas ance cane sts of Leris shares. Tach stockly expected fetum for the nest year will depend on forecasted market co-ditions. The expected retime from the stocks in different market condtions are detailed in the foiloaing table: Caiculate exgeched returns for the individusi stocks in Davis's portfolo as nett as the axpected rate of return of the entire portfola oxer the thee poisible market conditions next year. - The expected rote of return on Criestial Crane Cosmetacts thosk over the next year is - The expecaed rate of regurn on Lumbering Ox Teuckmaken's stock over the next year it - The evpected rate of return on David's portiolie nver the nest year is/ For example, the continuous probability distributions of rates of return on stocks for two different companies are shown on the following graph: Based on the graph's information, which statement is false? Company H has lower risk. Company 6 has lower risk