Remember, the expected value 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 oxpected to result during each state of nature by its probability of occurrence. Consider the following case: Dominic owns a two-stock portfolio that invests in Blue Lama Mining Company (BLM) and Hungry Whale Electronics (HWE). Threequarters of Dominic's portfolio value consists of BUM's shares, and the balance consists of HWE's shares. Each stock's expected return for the next year will depend on forecested 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 Dominic's portfolio as well as the expected rate of return of the entire portfolio over the three possibie 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 Dominic's partfolio over the noxt year is The expected returns for Dominic's portfolio were caiculated based on three possible conditions in the market. Such conditions will vary from time to time, and for each condition thece will be a specific outcome. These probubilities and outcomes can be represented in the form of a continuous. Probubily distribetion graph. 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 araph's information, which statement is false? Compony it has lower risk. Company 6 has lower risk