Tyler owns a two-stock portfolio that invests in Falcon Freight Company (FF) and Pheasant Pharmaceuticals (PP). Three-quarters of Tyler's portfolio value consists of FF's shares, and the balance consists of PP'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 detailed in the following table: Market Condition Probability of Occurrence Strong 0.50 Normal 0.25 Weak 0.25 Falcon Freight Pheasant Pharmaceuticals 17.5% 24.596 10.5% 14% -14% -17.5% Calculate expected returns for the individual stocks in Tyler's portfolio as well as the expected rate of return of the entire portfolio over the three possible market conditions next year. . The expected rate of return on Falcon Freight's stock over the next year is The expected rate of return on Pheasant Pharmaceuticals's stock over the next year is . The expected rate of return on Tyler's portfolio over the next year is The expected returns for Tyler's portfolio were calculated based on the possible conditions in the market. Such conditions will vary from time to time, und for each condition there will be a specific outcome. These probabilities and outcomes can be represented in the form of a continuous probably distribution graph For example, the continuous probability distributions of rates of return on stocks for two different companies are shown on the following graph: PROBABILITY DENSITY Company Company 10 actory 20 40 10 RATE OF RETURN Percent) Based on the graph's information, which of the following statements is true? Company A has a smaller standard deviation Company has a smaller standard deviation