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Problem 13.22 (Algo) Portfolio effect of a merger [LO13.5] Treynor Ple Company is a food company specializing in high-calorie snack foods. It is seeking to

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Problem 13.22 (Algo) Portfolio effect of a merger [LO13.5] Treynor Ple Company is a food company specializing in high-calorie snack foods. It is seeking to diversify its lood business and lower its risks. It is examining three companles - a gourmet restaurant chain, a baby food company, and o nutritional products firm. Each of these companies can be bought at the same multiple of earnings. The following represents information about all the companies. a-1. Compute the coefficient of variation for each of the four companies. Note: Enter your answers in millions (e.9,$100,000 should be entered as ".107). Round your answers to 3 decimal places. 6-2. Which company is the least risky? Baby food company Nutritional products company Treynor Ple Company Gourmet restouront a-3. Which company is the most risky? Treynor Pie Company Gourmet restaurant Baby food company Nutritional products company b. Which of the acquisition candidates is most likely to reduce Treynor Pie Company's risk? Nutritional products company Gourmet restaurant Baby food company

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