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Joshua owns a two-stock portfolio that invests in Blue Llama Mining Company (BLM) and Hungry Whale Electronics (HWE). Three- quarters of Joshua's portfolio value consists

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Joshua owns a two-stock portfolio that invests in Blue Llama Mining Company (BLM) and Hungry Whale Electronics (HWE). Three- quarters of Joshua'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: Market Condition Probability of Occurrence Blue Llama Mining Hungry Whale Electronics 0.50 30% 42% Normal 0.25 18% Weak 0.25 -249 -30% Strong 24% Calculate expected returns for the individual stocks in Joshua'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 Blue Llama 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 Joshua's portfolio over the next year is possible market conditions next year. The expected rate of return on Blue Llama Mining's stock over the next year is The expected rate of return on Hungry Whale Electronics's stock over the next y The expected rate of return on Joshua's portfolio over the next year is 13.50% 11.48% 16.20% The expected returns for Joshua's portfolio were calculated based on three possib time, and for each condition there will be a specific outcome. These probabilities probability distribution graph. hs in the market. Such con es can be represented in t 18.23% The expected rate of return on Hungry Whale Electronics's stock over the next year is The expected rate of return on Joshua's portfolio over the next year is 19.50% The expected returns for Joshua's portfolio were calculated based on three possible cond 24.18% market. Such conditions wi time, and for each condition there will be a specific outcome. These probabilities and out be represented in the form o 12.68% probability distribution graph, 22.03% For example, the continuous probability distributions of rates of return on stocks for two bmpanies are shown on the fe The expected rate of return on Joshua's portfolio over the next year is 18.00% The expected returns for Joshua's portfolio were calculated based on thre conditions time, and for each condition there will be a specific outcome. These proba 12.75% outcomes probability distribution graph, 20.25% For example, the continuous probability distributions of rates of return on two differe 15.00%

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