Remember, the expected vatue of a probability distribution is a statistical messure of the average (mean) value expected to occur during all possible clroumstances. To compute an asset's expected return under s ronge of possble crcumstances (or states of nature), multiply the antlclpated return expected to resul during bach state of nature by its probabiity of occurrence. Consider the following case: Ion owns a two-stock portfolio that invests in Falcon Freight Company (FF) and Pheasant Pharmaceuticais (PP). Three-quarters of lan's portfotio value consists of FF's shares, and the balince consists of Pp's stiares. Each stock's expected retum for the next year will depend on forecasted market conditions. The expocted returns from the stocks in different mariont conditions are detalled in the following table: Calculate expected returns for the individual stocks in lan's portholip as well as the expected rate of retum of the entire portfollo over the three possible markat conditions next year - The expected rate of return on Falcon freights stock over the next year is - The expected rate of retum on Pheasant pharmaceuticals's stock over the next year is - The expected rate of retum on lan's portfolio over the next year is The expected returns for lan's portfolio were caloulated based on three possiblo conditions in the market. Such conditions will vary from time to time, and for esch condion there will be a specfic outcome: These probabilities and outcomes con be represented in the form of a continuous probsiblity distribution graph, For example, the continuous probsbility Gistributions of ntes of refurn on stodes for two different companies are shown on the following graph: Based on the graphis iaformation, which of the folleniag statenients is triae? Compony A hat a toliter prababitity datiouson. Cornpary a fus a tighter pribatilisy distritucion