$3.$ Statisticalmeasures of standalone risk

Suppose Cho owns a two$-$stock portfolio that invests in Blue Llama Mining Company $($BLM$)$ and Hungry Whale Electronics $($HWE$).$ Three$-$quarters of Cho$$s portfolio value consists of Blue Llama Mining$$s shares, and the remaining balance consists of Hungry Whale Electronics$$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

Expected Returns

Occurrence

BLM

HWE

Strong $25\%50\%70\%$

Normal $45\%30\%40\%$

Weak $30\%-40\%-50\%$

Calculate the expected returns for the individual stocks in Cho$$s portfolio as well as the expected rate of return of the entire portfolio over the three possible market conditions next year.

$$ The expected rate of return on Blue Llama Mining$$s stock over the next year is $18\mathrm{.}90\%.$

$$ The expected rate of return on Hungry Whale Electronics$$s stock over the next year is $.$

$$ The expected rate of return on Cho$$s portfolio over the next year is $.$