Remembec, the expected valie of a probability distribution is a statistical measure of the average (mean) value expected to occur during all possible circumstances. To compute an asset's expected return under a range of possible circumstances (or states of nature), multiply the anticipated return expected to result during each state of nature by its probability of occurrence. Consider the following case: David owns a two-stock portfolio that invests in Blue Uama Mining Company (BuM) and Hungry Whale Electronics (HWE). Threequarters of David'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 retums from the stocks in different market conditions are detailed in the following table: Calculate expected returns for the individual stocks in David's portfolo 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 Uama 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 David's portfolio over the next year is Based on the graph's information, which of the following statements is true? Company A has a smaller standard deviation. Company B has a smaller standard deviation