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James owns a two-stock portfolio that invests in Blue Lama 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 Lama Mining Company (BLM) and Hungry Whale Electronics (HWE). Threequarters of James's portfolio value consists of BLM's shares, and the balance 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 table: Calculate expected returns for the individual stocks in James's portfolio as well os the expected rate of return of the entire portfolio over the three possibie market conditions next vear. - The expected rate of return 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 retums for James's portfolio were calculated based on three possible conditions in the market. Such conditions will vary from time to time, and for each condition there will be a specific outcome, These probabilities and outcomes can be represented in the form of a contincous probability distribution qraph. For example, the continuous probability distributions of rates of return on stocks for two different companies are shown on the following graph: Based on the graph's information, which company's returns exhibit the greater risk? Company H company G

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