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 antidpated return expected to result during each state of nature by its probability of occurrence. Consider the following case: Juan owns a two-stock portfolio that invests in Blue Llama Mining Company (BLM) and Hungry whale Electronics (HWE). Three-quarters of Juan's portfolio value consists of BLM's shares, and the balance consists of HWE's shares Each stock's expected return for the next yea 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 El 49% 28% -35% 35% Strong Normal Weak 50% 25% 25% 21% -28% Calculate expected returns for the individual stocks in Juan's portfolio as well as the expected rate of re entire portfolio over the three possible market conditions next year. turn of the . 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 Juan's portfolio over the next year is