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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 ) =
- 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 = $3.60; 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 ($1.64) $1.80 $5.10 $8.40 $11.84 Firm B: EPSB (1.20) 1.35 4.20 7.05 9.60 Firm C: EPSC (2.57) 1.35 5.10 8.85 12.77
E(EPSC): $ - You are given that c = $4.12. 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
The most risky firm is -Select-Firm AFirm BFirm CItem 5 .
Probability | |||||
0.1 | 0.2 | 0.4 | 0.2 | 0.1 | |
Firm A: EPSA | ($1.64) | $1.80 | $5.10 | $8.40 | $11.84 |
Firm B: EPSB | (1.20) | 1.35 | 4.20 | 7.05 | 9.60 |
Firm C: EPSC | (2.57) | 1.35 | 5.10 | 8.85 | 12.77 |
CV | |
A | |
B | |
C |
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