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2. Stotintical measures of standalone risk expected to resut during nach state of nature by its probability of octurnence. Consider the following case: Joshua owris

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2. Stotintical measures of standalone risk expected to resut during nach state of nature by its probability of octurnence. Consider the following case: Joshua owris a two-stock portfolio that imvests in Celestial Crane Counctics Compary (CCCQ) and Lembertog Ox Trudemakers flon). Each stock's expected eeturn for the next year will depend on foreasted market condiboth. The expected returns from the stacks in different market constions are detaled in the following taple: possible morke conditions neat year. - The expected rate of retum on Celestial Crane Cosmetics's stock over the neat yeic is - The expected rate ef return an Lumbering Ox Truckenakers's stock over the next yest is - The expected rate of retum on feshuals pertfolie over the next vear is The expected teturns for Joshus's portfolio were calculntes baned en three possible condsocts in the manet such cencitions will vary from bese to time, and for each condition there wall be a specinc outcome. These probabileies and eutcomes can be represthted in the farm of a continuous probabaty distributien graph. Based on the graph's information, which compary/s returns extibit the grater risk? Compasar H Company 6

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