Respective coefficients of variation

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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 σA = $3.61; E(EPSB) = $4.20, and σB = $2.95. Round your answer to two decimal places.

Probability

0.1 0.2 0.4 0.2 0.1

Firm A: EPSA ($1.65) $1.80 $5.10 $8.40 $11.85

Firm B: EPSB (1.20) 1.30 4.20 7.10 9.60

Firm C: EPSC (2.52) 1.35 5.10 8.85 12.72

E(EPSC) = $

You are given that σc = $4.10. 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

Reference no: EM132532003

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