Remember, the expected value of a probability distribution is a statistical measure of the average (mean) value expected to occur during alf possible circumstanoes. 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 foliowing case: Joshua owns a two-stock portfolio that invests in Blue Uama Mining Company (BLM) and Hungry Whale Electronics (HWE). Threequarters of Joehwa's portfolio value consists of BLM's shares, and hhe 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 detalled in the following table: Calculate exected returns for the individual stocks in Joshua's portolo as well as the expected rate of return of the entire portfolio over the three poswble market conditions next year. - The expected rate of retum on Blue Lama Mining's stock ever the next year is - The expected rate of return on Hungey whole Electronics's stock ever the next year is - The expected rate of return on loshuak portolio over the neat year is The repected returns for Joshuas portolio were calculated based on three powible conditions in the market. such conditions will vary from time to tine, and for esch condtion thern will be a specfic outcome. These probabelies and cutcomes can be repreiented in the form of a continuous arobabily distribution ersph. Calculate expected retums for the individual stocks in Joshua's portfolio as weil 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 retum on Hungry Whale Electronics's stock over the next year is - The expected rete of retum on Joshua's portfolio over the next year is The expected returns for Joshua's portfolio were calculated based on three possible conditions in the market. Such conditions will vary from time to vime, and for each condition there will be a specific outcome. These probabilities and outcomes can be represented in the form of a continuous probabibty destribution 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 graphs information, which of the following statements is true? Comperiy A hos a smailer standard deviation. Compeny 8 has a snpller standard deviation