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Business, 26.08.2019 16:30 franklinkaylieg3873

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. company correlation with treynor pie company sales ($ millions) expected earnings ($ millions) standard deviation in earnings ($ millions) treynor piecompany + 1.0 $ 170 $ 8 $ 2.0 gourmet restaurant + .4 64 8 1.3 baby food company + .4 53 5 1.8 nutritionalproducts company − .7 71 6 3.6 a-1. compute the coefficient of variation for each of the four companies

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