Dominic owns a two-stock portfolio that invests in Happy Dog Soap Company (HDS) and Black Sheep Broadcasting (BSB). Three-quarters of Dominic's portfolio value consists of HDS's shares, and the balance consists of BSB'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 Strong Normal Weak Probability of Occurrence 0.50 Happy Dog Soap 37.5% 22.5% -30% Black Sheep Broadcasting S2.5% 30% -37.5% 0.25 0.25 Calculate expected returns for the individual stocks in Dominic's portfolio as well as the expected rate of return of the entire portfolio over the three possible market conditions next year. 1. The expected rate of return on Happy Dog Soap's stock over the next year is 2. The expected rate of return on Black Sheep Broadcasting's stock over the next year is 3. The expected rate of return on Dominic's portfolio over the next year is The expected returns for Dominic's portfolio were calculated based on three possib time, and for each condition there will be a specific outcome. These probabilities an probability distribution graph. For example, the continuous probability distributions of rates of return on stocks for PROBABILITY DENSITY Company G Company H -40 -20 0 20 40 60 RATE OF RETURN (Percent) Based on the graph's information, which statement is false? Company H has lower risk. Company G has lower risk