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Measuring Risk 7-4. As a new loan officer in the Springfield Bank, you are comparing the financial riskiness of two firms. Selected information from pro
Measuring Risk 7-4. As a new loan officer in the Springfield Bank, you are comparing the financial riskiness of two firms. Selected information from pro forma statements for each firm follows. Equity Eddie's Company Net Income Forecast (in 000's) Barry Borrower's Company Net Income Forecast (in 000's) 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's net incomes. d. Compare Equity Eddie's and Barry Borrower's degrees of financial risk
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