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Risk analysis 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 σA = $3.59; E(EPSB) = $4.20, and σB = $2.95. Round your answer to two decimal places. Probability 0.1 0.2 0.4 0.2 0.1 Firm A: EPSA ($1.66) $1.80 $5.10 $8.40 $11.86 Firm B: EPSB (1.20) 1.40 4.20 7.00 9.60 Firm C: EPSC (2.59) 1.35 5.10 8.85 12.79 E(EPSC) = $ You are given that σc = $4.11. Discuss the relative riskiness of the three firms' earnings using their respective coefficients of variation. Round your answer to two decimal places. CV A B C The most risky is

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Financial Management, Finance

Category:- Financial Management
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