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Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and B are as follows: E(EPS A ) =

  1. 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 = $3.62; E(EPSB) = $4.20, and B = $2.94. Do not round intermediate calculations. Round your answer to the nearest cent.
    Probability
    0.1 0.2 0.4 0.2 0.1
    Firm A: EPSA ($1.65) $1.80 $5.10 $8.40 $11.85
    Firm B: EPSB (1.20) 1.30 4.20 7.10 9.60
    Firm C: EPSC (2.54) 1.35 5.10 8.85 12.74
    E(EPSC):_____ $
  2. You are given that c = $4.11. Discuss the relative riskiness of the three firms' earnings using their respective coefficients of variation. Do not round intermediate calculations. Round your answers to two decimal places.
    CV
    A
    B
    C

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