Suppose Rajlv owns a two-stock portfolio that invests Celestial Crane Cosmetics Company (CCC) and Lumbering Ox Truckmakers (LOT). Three quarters of Rajiv's portfolio value consists or celestial Crane Cosmetics's shares, and the remaining balance consists of Lumbering Ox Truckmakers's shares

3. Statisticalmeasures of standalone risk Suppose Rajiv owns a two-stock portfolio that invests in Celestial Crane Cosmetics Company (CCC) and Lumbering ox Truckmakers (LOT). Three- quarters of Rajiv's portfolio value consists of Celestial Crane Cosmetics's shares, and the remaining balance consists of Lumbering Ox Truckmakers'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: Market Condition Strong Normal Probability of Expected Returns Occurrence CCC LOT 50% 20% 28% 25% 12% 16% 25% -16% -20% Weak Calculate the expected returns for the individual stocks in Rajiv's portfolo as wn as the expected rate of return of the entire portfolio over the three possible market conditions next year. . The expected rate of return on Celestial Crane Cosmetics's stock over the next year is The expected rate of return on Lumbering Ox Truckmakers's stock over the next year is . The expected rate of return on Rajiv's portfolio over the next year is