Question: Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk. a. Which one of the four investments should Tim choose? Compute coefficients

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

a. Which one of the four investments should Tim choose? Compute coefficients of variation to help you in your choice.

Investments Returns: Expected Value Standard Deviation
Buy stocks $9,140 $6,140
Buy bonds $7,680 $2,560
Buy commodity futures $19,100 $26,700
Buy options $17,700 $18,200

b. Which one of the four investments should Mike choose?

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