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uan owns a two-stock portfolio that invests in Blue Llama Mining Company (BLM) and Hungry Whale Electronics (HWE). Three-quarters of Juans portfolio value consists of

uan owns a two-stock portfolio that invests in Blue Llama Mining Company (BLM) and Hungry Whale Electronics (HWE). Three-quarters of Juans portfolio value consists of BLMs shares, and the balance consists of HWEs shares.

Each stocks 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

Blue Llama Mining

Hungry Whale Electronics

Strong 0.50 42.5% 59.5%
Normal 0.25 25.5% 34%
Weak 0.25 -34% -42.5%

Calculate expected returns for the individual stocks in Juans 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 Blue Llama Minings stock over the next year is .____%
The expected rate of return on Hungry Whale Electronicss stock over the next year is ______% .
The expected rate of return on Juans portfolio over the next year is _____% .

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