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 = $2.98. Round your answer to two decimal places.
Probability
0.1 0.2 0.4 0.2 0.1
Firm A: EPSA ($1.68) $1.80 $5.10 $8.40 $11.88
Firm B: EPSB (1.20) 1.31 4.20 7.09 9.60
Firm C: EPSC (2.51) 1.35 5.10 8.85 12.71
E(EPSC) = $_______
b. You are given that sc = $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