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3 Treynor Ple Company is a food company specializing in high-calorie snack foods. It is seeking to diversity its food business and lower its risks.

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3 Treynor Ple Company is a food company specializing in high-calorie snack foods. It is seeking to diversity 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 Correlation with Standard deviation Treynor Pie Sales Expected Earnings in Earnings Company Company (5 millions) (5 millions) (5 millions) Treynor Ple Company 1.0 $ 145 $10 $ 4.0 Gourmet restaurant - 0.5 56 6 1.2 Baby food company +0.4 52 1.9 Nutritional products company -0.7 74 3.1 Book 4 5 0-1. Compute the comcent of vanation for each of the four companies (Enter your answers in millions (0.9., 100,000 should be entered os 10"), Round your answers to 3 decimal places.) Print Coefficient of Variation References Treynor Pro Company Gourmet restaurant Baby food company Nutritional products company 0-2. Which company is the least nisky? Gourmet restaurant O Baby food company Treynor Pie Company Nutritional products company Coefficient of Variation Treynor Pie Company Gourmet restaurant Baby food company Nutritional products company SK a-2. Which company is the least risky? ht O Gourmet restaurant Baby food company Treynor Ple Company O Nutritional products company nces 2-3. Which company is the most risky? O Treynor Pie Company O Gourmet restaurant O Baby food company Nutritional products company b. Which of the acquisition candidates is most likely to reduce Treynor Ple Company's risk? O Gourmet restaurant O Baby food company O Nutritional products company

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