Assume the Knight Corporation is considering the acquisition of Day Incorporated The expected earnings per share for the Knight Corporation will be $4.00 with or without the merger. However, the standard deviation of the earnings will go from $2.40 to $1.60 with the merger because the two firms are negatively correlated. a. Compute the coefficient of variation for the Knight Corporation before and after the merger. Note: Do not round intermediate calculations and round your answers to 2 decimal places. Pre-merger Post-merger Coefficient of Variation b. Comment on the possible impact on Knight's postmerger P/E ratio, assuming investors are risk-averse. Risk-averse investors are being offered risk and may assign a P/E ratio to postmerger earnings.