6 Treynor Pie Company is a food company specializing in high-calorie snack foods it is...

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6 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 10 points Correlation with Treynor Pie Company + 1.0 Sales (5 millions) $ 189 63 57 76 Expected Earnings (5 millions) $8 7 Company Treynor Pie Company Gourmet restaurant Baby food company Nutritional products company Standard deviation in Earnings Is millions) $ 2.0 1.4 1.6 4 5 0.5 References 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 Gourmet restaurant O Baby food company Treynor Pie Company O Nutritional products company a-2. Which company is the least risky? Gourmet restaurant Baby food company Treynor Pie Company O Nutritional products company a-3. Which company is the most risky? O Baby food company Nutritional products company O Gourmet restaurant Treynor Pie Company b. Which of the acquisition candidates is most likely to reduce Treynor Pie Company's risk? O Gourmet restaurant Baby food company Nutritional products company BR

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