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James owns a two-stock portfolio that invests in Blue Hama Mining Company (BLM) and Hungry Whale Electronics (HWE). Threequarters of James's portfolio value consists of

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James owns a two-stock portfolio that invests in Blue Hama Mining Company (BLM) and Hungry Whale Electronics (HWE). Threequarters of James's portfolio value consists of BtM's shares, and the batance consists of HWE'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 tabie: Calculate expected returns for the individual stocks in lames's portfolio as well as the expeljed rate of return of the entire portfolio over the three possible market condibons next year. - The expected rate of retum on Blue Lama Mining's stock over the next year is - The expected rate of return on Hungry Whale Electronics's stock over the next year is - The expected rate of return on James's portfolio over the next year is. The expected returns for James's portfolio were calculated based on three possible conditions in the market. Such conditions will vary from time to time, and for eich condition there will be a specific outcome. These probabidities and outcomes can be reptesented in the form of a continuous probability distrobution graph. For example, the continubus probability distributions of rates of retum on stocks for two ditferent companies ate shown on the following graph: Based on the graph's information, which company's returns exhubit the greater risk? Company H Company G

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