Treynor Ple Co. 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 table represents information about all the companies Company Treynor Pie Company Gourmet restaurant Baby food company Nutritional products company Correlation with Treynor Pie Company +1.0 +0.4 +0.3 -0.7 Sales (5 millions) $126 63 52 77 Expected Earnings (5 millions) $10 9 5 2 Standard Deviation in Earnings ($llions) $4.0 1.4 1.6 3.2 a-1. Based on the coefficient of variation, which company is the least risky? O Treynor Pie Company O Gourmet restaurant O Baby food company Nutritional products company a-2. Based on the coefficient of correlation, which company is the most risky? O Treynor Pie Company O Gourmet restaurant O Baby food company O Nutritional products company b. Discuss which of the acquisition candidates is most likely to reduce Treynor Pie Company's risk. Explain why