Would you show the work on how you get the answer for the expected rate of return on Aarons portfolio over the next year.

HW 06 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 Celestial Crane Cosmetics Lumbering Ox Truckmakers Strong Normal Weak 50% 25% 25% 50% 30% -40% 70% 40% -50% Calculate expected returns for the individual stocks in Aaron'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 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 Aaron's portfolio over the next year is 22.50% . 32.50% 25.00% 21.25% 30.00% The expected returns or Aaron's portfolio were calculated based on three pos 33.75% ns in the market. Such conditions will vary from time to time, and for each condition there will be a specfic outcome. These probabities and outcomes can be represented in the form of a condinuous probability distribution graph. on stocks for two different companies are For example, the continuous shown on the following graph