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Treynor Ple Company is a food company specializing in high-calorte 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-calorte 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 Treynor Pic Company 1.0 .0.2 0.1 Company Treynor Pie Company Gourmet restaurant Baby food company Nutritional products company Sales {$sillions) $ 121 56 56 28 Expected tarnings ( 51lions) 510 Standard deviation in Earnings (5 millions) 54. 1.2 1. 3.2 6-1. 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 0-2. Which company is the least nisky? Treynor Ple Company Gourmet restaurant Nutritional products company Baby food company -3. Which company is the most risky? Gourmet restaurant Baby food company a-3. Which company is the most risky? O Gourmet restaurant O Baby food company Treynor Ple Company Nutritional products company b. Which of the acquisition candidates is most likely to reduce Treynor Ple Company's risk? O Baby food company Nutritional products company O Gourmet restaurant

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