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 A = $3.61; E(EPSB) = $4.20, and B = $2.98. Round your answer to two decimal places.

Probability

0.1 0.2 0.4 0.2 0.1

Firm A: EPSA ($1.68) $1.80 $5.10 $8.40 $11.88

Firm B: EPSB (1.20) 1.31 4.20 7.09 9.60

Firm C: EPSC (2.51) 1.35 5.10 8.85 12.71

E(EPSC) = $_______

b. You are given that c = $4.12. Discuss the relative riskiness of the three firms' earnings using their respective coefficients of variation. Round your answer to two decimal places.

CV:

A

B

C