CH .08 Q2

Joshua owns a two-stock portfolio that invests in Celestial Crane Cosmetics Company (CCC) and Lumbering Ox Truckmakers (LOT). Three-quarters of Joshua's portfolio value consists of CCC's shares, and the balance consists of LOT's stares. Each stock's expected retum 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: Calculate eqpected returns for the individual secks in Joshua's poitfollo as well as the expected rate of return of the entire poitfolio over the three possble market conditions next year. - The expected nate of retum of Calustial crant Cosminca's stock over the next year is Aased on the oraph's information, which statement is false? Compacy H has lover risk Company. G has lower risk