Problem 13-22 (Algo) Portfollo 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 food business and lower Its risks. It is examining three companies-a gourmet restaurant chain, a baby food company, and a nutritional products firm. Each of these companies can be bought at the same multiple of earnings. The following represents Information about all the companies. Company Treynor Ple Company Gourmet restaurant Baby food company Nutritional products company Correlation with Treynor Ple Company Sales ($ millions) Expected Earnings (5 millions) Standard Deviation In Earnings ($ millions) +1.0 +0.6 $192 $7 $ 2.0 60 6 1.3 +0.3 54 4 1.6 -0.9 72 5 33 a-1. Compute the coefficient of variation for each of the four companies. Note: Enter your answers In millions (e.g. $100,000 should be entered as "10). Round your answers to 3 decimal places. Treynor Pie Company Gourmet restaurant Baby food company Nutritional products company Coefficient of Variation a-2. Which company is the least risky? O Treynor Ple Company O Gourmet restaurant O Baby food company O Nutritional products company a-3. Which company is the most risky? O Baby food company O Nutritional products company O Treynor Ple Company O Gourmet restaurant b. Which of the acquisition candidates is most likely to reduce Treynor Ple Company's risk? Baby food company O Gourmet restaurant O Nutritional products company