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Measuring Risk 7-4. As a new loan officer in the Springfield Bank, you are comparing the financial tive. iness of two firms. Selected information from
Measuring Risk 7-4. As a new loan officer in the Springfield Bank, you are comparing the financial tive. iness of two firms. Selected information from pro forma statements for each fit follows. Barry Borrower's Company Net Income Forecast (in 000's) Probability of Occurrence a. Calculate the expected values of Equity Eddie's and Barry Borrower's net incomes. b. Calculate the standard deviations of Equity Eddie's and Barry Borrower's net incomes. c. Calculate the coefficients of variation of Equity Eddie's and Barry Borrower' net incomes. d. Compare Equity Eddie's and Barry Borrower's degrees of financial risk
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