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Probability 0.1 0.2 0.4 0.2 0.1 Firm A: EPS $ (1.30) $ 2.50 $ 6.20 $ 9.40 $ 13.89 Firm B: EPS $ (1.00) $
Probability | |||||
0.1 | 0.2 | 0.4 | 0.2 | 0.1 | |
Firm A: EPS | $ (1.30) | $ 2.50 | $ 6.20 | $ 9.40 | $ 13.89 |
Firm B: EPS | $ (1.00) | $ 1.55 | $ 4.50 | $ 7.20 | $ 9.40 |
Firm C: EPS | $ (2.40) | $ 1.05 | $ 5.30 | $ 8.75 | $ 11.80 |
Standard Deviations | |||||
A | $ 4.61 | ||||
B | $ 3.87 | ||||
C | $ 4.22 |
See the Question 4 tab in the attached Excel workbook. Given the information in the workbook about Firms A, B, and C, rank the firms from most to least risky (hint: you will want to calculate the CVs and compare them). Blank 1
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