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The earnings per share (EPS) for firm C are given below for various scenarios: ProbabilityEPS C 0.3-3.50.44.20.39.4 Data for Firms A and B are as

The earnings per share (EPS) for firm C are given below for various scenarios:

ProbabilityEPS_C0.3-3.50.44.20.39.4

Data for Firms A and B are as follows: E(EPS_A) = $5.8 and _A = $3.72, E(EPS_B) = $4.5 and _B = $3.47.

Part 1

What is the expected value of firm C's EPS?

What is the coefficient of variation for firm A?

Part 3

What is the coefficient of variation for firm B?

Part 4

Assume that _c = 5.03. What is the coefficient of variation for firm C?

Which stock is most risky based on the coefficient of variation?

Firm A

Firm B

Firm C

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