Discuss the realtive riskiness of the three firms earnings

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Reference no: EM131881737

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 sA= $3.61; E(EPSB) = $4.20, and sB = $2.96. Round your answer to two decimal places.

Probability

	0.1	0.2	0.4	0.2	0.1
Firm A EPS a	($1.50)	1.80	5.10	8.40	11.70
Firm B EPS b	(1.20)	1.50	4.20	6.90	9.60
Firm C EPS c	(2.40)	1.35	5.10	8.85	12.60

B You are given that oC= $4.11 Discuss the realtive riskiness of the three firms earnings.

Reference no: EM131881737

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