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Treynor Pie Company is a food company specializing in high - calorie snack foods. It is seeking to diversify its food business and lower its

Treynor Pie 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.
\table[[Company,\table[[Correlation],[with Treynor],[Pie Company]],\table[[Sales ($],[millions)]],\table[[Expected],[Earnings ($],[millions)]],\table[[Standard],[Deviation in],[Earnings ( $
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