Ethan owns a two-stock portfolio that invests in Happy Dog Soap Company (HDS) and Black Sheep Broadcasting (BSB). Three-quarters of Ethan'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: Happy Dog Soap Probability of Occurrence 20% 35% Black Sheep Broadcasting 21% Market Condition Strong Normal Weak 15% 9% 12% 45% -12% -15% Calculate expected returns for the individual stocks in Ethan's portfolio as well as the expected rate of return of the entire portfolio over the three possible market conditions next year. 0.64% The expected rate of return on Happy Dog Soap's stock over the next year is The expected rate of return on Black Sheep Broadcasting's stock over the nex . The expected rate of return on Ethan's portfolio over the next year is 0.75% The expected returns for Ethan's portfolio were calculated based on three possibl 10 pns in the market. Such conditions will vary from time to time, and for each condition there will be a specific outcome. These probabilities mes can be represented in the form of a continuous probability distribution graph. 0.90% rotu torbe for two different companies are shown on the following cranh Consider the following case: Ethan owns a two-stock portfolio that invests in Happy Dog Soap Company (HDS) and Black Sheep Broadcasting (BSB). Three-quarters of Ethan'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 Happy Dog Soap Black Sheep Broadcasting Strong 21% Probability of Occurrence 20% 35% 45% Normal 15% 9% -12% 12% Weak -15% Calculate expected returns for the individual stocks in Ethan'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 Happy Dog Soap's stock over the next year is . The expected rate of return on Black Sheep Broadcasting's stock over the next year is . The expected rate of return on Ethan's portfolio over the next year is 1.65% The expected returns for Ethan's portfolio were calculated based on three possible condit 2.05% market. Such conditions will vary from time to time, and for each condition there will be a specific outcome. These probabilities and outd " 1.86% be represented in the form of a continuous probability distribution graph. 1.07% For example, the continuous probability distributions of rates of return on stocks for two c o mpanies are shown on the following graph: Ethan owns a two-stock portfolio that invests in Happy Dog Soap Company (HDS) and Black Sheep Broadcasting (BSB). Three-quarters of Ethan'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 Probability of Occurrence Happy Dog Soap Strong 15% 20% 35% Black Sheep Broadcasting 21% 12% Normal 9% Weak 45% -12% -15% Calculate expected returns for the individual stocks in Ethan'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 Happy Dog Soap's stock over the next year is The expected rate of return on Black Sheep Broadcasting's stock over the next year is The expected rate of return on Ethan's portfolio over the next year is conditions in the market. Such conditions will vary from time to nd outcomes can be represented in the form of a continuous 0.98% The expected returns for Ethan's portfolio were calculated based on thre time, and for each condition there will be a specific outcome. These prod 1.18% probability distribution graph. 1.32% For example, the continuous probability distributions of rates of return o 0.83% or two different companies are shown on the following graph: For example, the continuous probability distributions of rates of return on stocks for two different companies are shown on the following graph: PROBABILITY DENSITY Company A Company B -20 0 20 40 60 RATE OF RETURN (Percent) Based on the graph's information, which of the following statements is true? Company A has a smaller standard deviation Company B has a smaller standard deviation