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can someone help me understand this. Treynor Pie Company is a food company specializing in high-calorie snack foods. It is seeking to diversify its food

can someone help me understand this.

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Treynor Pie Company is a food company specializing in high-calorie snack foods. It is seeking to diversify 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. Standard Deviation in Earnings millions) $ 2.0 Correlation with Treynor Pie Company Sales Expected Earnings (S millions) 8 Company Treynor PieCompany ($ millions) 102 + 1.0 1.1 6 65 5 Gourmet restaurant + 1.8 Baby food company Nutritionalproducts company 2 55 + 3.4 5 78 4 a-1. Compute the coefficient of variation for each of the four companies. (Enter your answers in millions (e.g., $100,000 should be entered as "10"). Round your answers to 3 decimal places.) Coefficient of Variation Treynor Pie Company Gourmet restaurant Baby food company Nutritional products company a-2. Which company is the least risky? Treynor Pie Company Gourmet restaurant Baby food company Noritional products company co un mt

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