financial manegmnent

a-2. Which company is the least risky? O Baby food company O Gourmet restaurant O Nutritional products company Treynor Pie Company a-3. Which company is the most risky? Gourmet restaurant O Baby food company Nutritional products company Treynor Pie Company b. Which of the acquisition candidates is most likely to reduce Treynor Pie Company's risk? Gourmet restaurant Baby food company Nutritional products company Help Save & EX 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. Correlation with Standard deviation Treynor Ple Sales Expected Earnings in Earnings Company Company Treynor Ple Company (5 millions) (5 millions) (5 millions) + 1.0 $ 162 Gourmet restaurant $20 $ 4.0 +0.6 Baby food company 1.6 + 0.2 Nutritional products company 57 -0.5 3.5 66 1.6 74 0-1. 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.) Treynor Ple Company Gourmet restaurant Baby food company Nutritional products company Coefficient of Variation 0400 0229 0533 0.700