Question: 3. Problem 13.03 (Risk Analysis) eBook a. Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and B

3. Problem 13.03 (Risk Analysis) eBook a. Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and B are as follows: E(EPSA) = $5.10, and OA Round your answer to the nearest cent. $3.62; E(EPSB) = $4.20, and 0B = $2.97. Do not round intermediate calculations. Probability 0.1 0.2 0.4 0.2 0.1 Firm A: EPSA Firm B: EPSB Firm C: EPSC ($1.64) $1.80 $5.10 $8.40 $11.84 (1.20) 1.36 4.20 7.04 9.60 (2.56) 1.35 5.10 8.85 12.76 E(EPSC): $ b. You are given that oc = $4.10. 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 A B The most risky firm is -Select- V
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