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James owns a two-stock portfolio that invests in Falcon Freight Company (FF) and Pheasant Pharmaceuticals (PP). Three-quarters of James's portfolio value consists of FF's shares,
James owns a two-stock portfolio that invests in Falcon Freight Company (FF) and Pheasant Pharmaceuticals (PP). Three-quarters of James's portfolio value consists of FF's shares, and the balance consists of PP'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: possible market conditions next year. - The expected rate of return on Falcon Freight's stock over the next year is - The expected rate of return on Pheasant Pharmaceuticals's stock over the next year is - The expected rate of return on James's portfolio over the next year is
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