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13-3 RISK ANALYSIS a. Given the following information, calculate the expected value for Firm C's EPS. Data for Firms. A and B are as follows:
13-3 RISK ANALYSIS 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. A = $3.61, E(EPS) = $4,20, and og = $2.96. Probability 01 0.2 0.4 0.2 Eium A: EPSA Firm B:EPS Firm CEPS ($1.50) (1.20) (2.40) $1.80 1,50 1.35 $5.10 4.20 5.10 $8.40 6.90 8.85 03 $11.70 9.60 12.60 b. You are given that oc = $4.11. Discuss the relative riskiness of the three firms' earnings. o =
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