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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. 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 A= $3.61; E(EPSB) = $4.20, and B = $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.
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