Assume the Knight Corporation is considering the acquisition of Day Inc. The expected earnings per share for the Knight Corporation will be $$14$ with or without the merger. However, the standard deviation of the earnings will go from $$2\mathrm{.}10$ to $$1\mathrm{.}40$ 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. $($Do not round intermediate calculations and round your answers to $2$ decimal places.$)$

b$.$ Comment on the possible impact on Knight$$s postmerger P$/$E ratio, assuming investors are risk$-$averse.