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A. Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and B are as follows: E(EPSA) = $5.10, and sA= $3.61; E(EPSB) = $4.20, and sB = $2.96. Round your answer to two decimal places.

Probability


0.1 0.2 0.4 0.2 0.1
Firm A EPS a ($1.50) 1.80 5.10 8.40 11.70
Firm B EPS b (1.20) 1.50 4.20 6.90 9.60
Firm C EPS c (2.40) 1.35 5.10 8.85 12.60

B You are given that oC= $4.11 Discuss the realtive riskiness of the three firms earnings.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92710084

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