Problem 13-22 Portfolio effect of a merger [LO13-5] Treynor Ple Company is a food company specializing in high-calone 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 companiles standard Deviation in Earnings correlation with Treynor Ple Company +1.0 sales (5 millions) Company Expected Earnings (5 millions) 59 (5 millions) $ 182 $ 3.0 Treynor Pie Company Gournet restaurant 1.2 +0.5 Baby food company +0.3 1.7 3.6 Nutritional products company 8.6 a-1. Compute the coefficient of variation for each of the four companies. (Enter youcanswers in millions (e.g., $100,000 should be entered as "10"). Round your answers to 3 decimal places.) Coefficient of Variation Treynor Pie Company Gourmet restaurant Baby food company Nutritional products company a-2. Which company is the least risky? O Baby food company O Gourmet restaurant O Treynor Ple Company O Nutritional products company a-3. Which company is the most risky? O Nutritional products company O Gourmet restaurant O Treynor Ple Company O Baby food company b. Which of the acquisition candidates is most likely to reduce Treynor Ple Company's nk? O Nutritional products company O Gourmet restaurant O Baby food company 2032 63 54 75