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Juan owns a two - stock portfolio that invests in Happy Dog Soap Company ( HDS ) and Black Sheep Broadcasting ( BSB ) .

Juan owns a two-stock portfolio that invests in Happy Dog Soap Company (HDS) and Black Sheep Broadcasting (BSB). Three-quarters of Juan'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:
\table[[Market Condition,Probability of Occurrence,Happy Dog Soap,Black Sheep Broadcasting],[Strong,0.50,37.5%,52.5%
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