Compute the expected value for company

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Given the following data, compute the expected value for company C's EPS. Information for Firms A nand B are as follows: E(EPSA) = $5.10, and oA =$3.61; E(EPSB) = $4.20,
You are given that oC = $4.11. Discuss the relative riskiness of the three firms' earnings. You are given that oC = $4.11. Discuss the relative riskiness of the three firm's earnings.

Probability 0.1 0.2 0.4 0.2 0.1
Firm A:EPSA ($1.50) $ 1.80 $ 5.10 $ 8.40 $ 11.70
Firm B: EPSB ( 1.20) 1.50 4.20 6.90 9.60
Firm C: EPSC ( 2.40) 1.35 5.10 8.85 12.60

 

Reference no: EM1373123

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