Here Are The Estimated Roe Distributions For Firms A B And C Probability 0 1 Fir

Here are the estimated ROE distributions for Firms A,B, and C:Probability0.10.20.40.20.1Firm A: ROEA0.00%5%10%15%20%Firm B: ROEB-2%5%12%19%26%Firm C: ROEC-5%5%15%25%35%7.7%.b. Discuss the relative riskiness of the three firms’ returns. (Assume that these distributions are expected to remain constant over time.)”c. Now suppose all three firms have the same standard deviation of basic earning5.5%. What can we tell aboutthe financial risk of each firm?”

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