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.

Company Correlation with

Treynor Pie

Company Sales

$($$ millions$)$ Expected Earnings

$($$ millions$)$ Standard Deviation

in Earnings

$($$ millions$)$

Treynor Pie Company $+1\mathrm{.}0$ $ $189$ $ $8$ $ $2\mathrm{.}0$

Gourmet restaurant $+0\mathrm{.}46371\mathrm{.}4$

Baby food company $+0\mathrm{.}35741\mathrm{.}6$

Nutritional products company $0\mathrm{.}57653\mathrm{.}3$

a$-1.$ Compute the coefficient of variation for each of the four companies. $($Enter your answers in millions $($e$.$g$.,$ $$100,000$ should be entered as $"\mathrm{.}10").$ Round your answers to $3$ decimal places.$)$

a$-2.$ Which company is the least risky?

multiple choice $1$

Nutritional products company

Gourmet restaurant

Baby food company

Treynor Pie Company

a$-3.$ Which company is the most risky?

multiple choice $2$

Gourmet restaurant

Nutritional products company

Treynor Pie Company

Baby food company

b$.$ Which of the acquisition candidates is most likely to reduce Treynor Pie Company's risk?

multiple choice $3$

Nutritional products company

Baby food company

Gourmet restaurant