Treynor Pie Company is a food company specializing in high-calorie snack foods. It is seeking to...

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Treynor Pie Company is a food company specializing in high-calorie snack foods. It is seeking to diversify its food business and lower its risks. It is examining three companies-a gourmet restaurant chain, a baby food company, and a nutritional products firm. Each of these companies can be bought at the same multiple of earnings. The following represents information about all the companies. Company Treynor Pie Company. Gourmet restaurant Baby food company Nutritional products company Treynor Pie Company Gourmet restaurant Correlation with Treynor Sales ($) millions) $148 Pie Company Baby food company Nutritional products company +1.0 +0.5 +0.4 -0.7 66 52 74 Coefficient of Variation Expected Earnings ($ millions) $10 6 4 5 a-1. Compute the coefficient of variation for each of the four companies. Note: Enter your answers in millions (e.g., $100,000 should be entered as "10"). Round your answers to 3 decimal places. Standard Deviation in Earnings ($) millions) $4.0 1.2 1.9 3.1 Treynor Pie Company is a food company specializing in high-calorie snack foods. It is seeking to diversify its food business and lower its risks. It is examining three companies-a gourmet restaurant chain, a baby food company, and a nutritional products firm. Each of these companies can be bought at the same multiple of earnings. The following represents information about all the companies. Company Treynor Pie Company. Gourmet restaurant Baby food company Nutritional products company Treynor Pie Company Gourmet restaurant Correlation with Treynor Sales ($) millions) $148 Pie Company Baby food company Nutritional products company +1.0 +0.5 +0.4 -0.7 66 52 74 Coefficient of Variation Expected Earnings ($ millions) $10 6 4 5 a-1. Compute the coefficient of variation for each of the four companies. Note: Enter your answers in millions (e.g., $100,000 should be entered as "10"). Round your answers to 3 decimal places. Standard Deviation in Earnings ($) millions) $4.0 1.2 1.9 3.1

Answer rating: 100% (QA)

Coefficient of variation V can be calculated as Standard deviation Expected ... View the full answer