a-2. Which company is the least risky? Nutritional products company Gourmet restaurant O Treynor Pie Company Baby food company a-3. Which company is the most risky? Gourmet restaurant O Treynor Pie...

Extracted text: a-2. Which company is the least risky? Nutritional products company Gourmet restaurant O Treynor Pie Company Baby food company a-3. Which company is the most risky? Gourmet restaurant O Treynor Pie Company O Baby food company O Nutritional products company b. Which of the acquisition candidates is most likely to reduce Treynor Pie Company's risk? Gourmet restaurant Nutritional products company O Baby food company


Extracted text: Treynor Pie Company is a food company specializing in high-calorie snack foods. It is seeking to diversify its food business and lower its risks. It is examining three companies-a gourmet restaurant chain, a baby food company, and a nutritional products firm. Each of these companies can be bought at the same multiple of earnings. The following represents information about all the companies. Correlation with Standard Deviation Sales ($ millions) $ 197 in Earnings ($ millions) $ 4.0 Treynor Pie Company + 1.0 + 0.6 + 0.3 - 0.7 Company Treynor Pie Company Expected Earnings ($ millions) $ 9 $ Gourmet restaurant 64 1.3 Baby food company Nutritional products company 54 1.8 75 3.2 a-1. Compute the coefficient of variation for each of the four companies. (Enter your answers in millions (e.g., $100,000 should be entered as ".10"). Round your answers to 3 decimal places.) Coefficient of Variation Treynor Pie Company Gourmet restaurant Baby food company Nutritional products company a-2. Which company is the least risky? O Nutritional products company