Question: Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk. Investments Returns: Expected Value Standard Deviation Buy stocks $ 9,470 $ 6,120

Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk.

Investments Returns: Expected Value Standard Deviation
Buy stocks $ 9,470 $ 6,120
Buy bonds 7,560 2,850
Buy commodity futures 20,400 26,100
Buy options 18,800 16,600

a-1.

Compute the coefficients of variation. (Round your answers to 3 decimal places.)

Coefficient of Variation
Buy stocks
Buy bonds
Buy commodity futures
Buy options

a-2. Which one of the following four investments should Tim choose?
Buy bonds
Buy stocks
Buy commodity futures
Buy options

b. Which one of the four investments should Mike choose?
Buy bonds
Buy stocks
Buy commodity futures
Buy options

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