2. Statistical measures of standalone risk Remember, the expected value of a probobility distribution is a statistical measure of the average (mean) value expected to occur during all possble circumstances. To compute an asset's expected return under a range of possible circumstances (or states of nature), multiply the anticipated return expected to result during each state of nature by its probability of occurrence. Consider the following case: Aaron owns a two-stock portfolio that invests in Blue Uama Mining Company (BLM) and Hungry Whale Electronics (HWE). Three: quarters of Aaron's portfolio value consists of BLM's shares, and the balance consists of HWE'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: Calculate expected returns for the individual stocks in Aarori's portfolio as well as the expected rate of return of the entire portiolio over the three possible market conditions next year. - The expected rate of return on Blue Llama Mining's stock over the next year is - The expected rate of return on Hungry Whale Electronics's stock over the next year is - Than exnected rate of return on Aaron's portfolio over the next year is