Problem 13-3 Risk analysis

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 = $3.60; E(EPSB) = $4.20, and B = $2.94. Round your answer to two decimal places.

	Probability
	0.1	0.2	0.4	0.2	0.1
Firm A: EPSA	($1.63)	$1.80	$5.10	$8.40	$11.83
Firm B: EPSB	(1.20)	1.40	4.20	7.00	9.60
Firm C: EPSC	(2.58)	1.35	5.10	8.85	12.78

E(EPSC) = $ 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