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 = $3.60; E(EPSB) = $4.20, and σB = $2.97. 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) 1.31 4.20 7.09 9.60
Firm C: EPSC (2.53) 1.35 5.10 8.85 12.73
E(EPSC) = $________
You are given that σc = $4.12. 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: