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Risk analysis Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and B are as follows: E(EPSA) =

Risk analysis

Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and B are as follows: E(EPSA) = $5.10, and A = $3.61; E(EPSB) = $4.20, and B = $2.98. Round your answer to two decimal places.

Probability
0.1 0.2 0.4 0.2 0.1
Firm A: EPSA ($1.64) $1.80 $5.10 $8.40 $11.84
Firm B: EPSB (1.20) 1.39 4.20 7.01 9.60
Firm C: EPSC (2.51) 1.35 5.10 8.85 12.71

E(EPSC) = $ You are given that c = $4.11. Discuss the relative riskiness of the three firms' earnings using their respective coefficients of variation. Round your answer to two decimal places.

CV
A
B
C

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