14,5

1. Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and B are as follows: E(EPS_A) = $5.10, and _A = $3.59; E(EPS_B) = $4.20, and _B = $2.96. Do not round intermediate calculations. Round your answer to the nearest cent.

E(EPS_C) =

2. You are given that _c = $4.11. Discuss the relative riskiness of the three firms' earnings using their respective coefficients of variation. Do not round intermediate calculations. Round your answers to two decimal places.

CV firm A=

CV firm B=

CV firm C=

3. What is the most risky firm A, B, or C?

\begin{tabular}{lrrrrr} & \multicolumn{5}{c}{ Probability } \\ \cline { 2 - 6 } & \multicolumn{1}{c}{0.1} & 0.2 & 0.4 & 0.2 & \multicolumn{1}{c}{0.1} \\ \hline Firm A: EPS & ($1.66) & $1.80 & $5.10 & $8.40 & $11.86 \\ Firm B: EPS B & (1.20) & 1.36 & 4.20 & 7.04 & 9.60 \\ Firm C: EPSC & (2.56) & 1.35 & 5.10 & 8.85 & 12.76 \end{tabular}