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.