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

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Treynor Ple 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 Correlation with Standard Deviation Treynor Pie Sales Expected Earnings in Earnings Company Company (5 millions) (5 millions) (5 millions) Treynor Pie Company $ 197 5 4.0 0.6 Baby food company Nutritional products company 75 3.2 + 1.0 Gourmet restaurant 64 54 0.3 1.3 1.8 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 "10"). Round your answers to 3 decimal places.) Coefficient of Variation Treynor Ple Company Gourmet restaurant Baby food company Nutritional products company -2. Which company is the least risky? a-2. Which company is the least risky? O Gourmet restaurant O Nutritional products company Treynor Pie Company O Baby food company a-3. Which company is the most risky? O Treynor Pie Company O Baby food company O Nutritional products company O Gourmet restaurant b. Which of the acquisition candidates is most likely to reduce Treynor Ple Company's risk? O Baby food company O Gourmet restaurant O Nutritional products company

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