Question: Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk. Investments Returns: Expected Value Standard Deviation Buy stocks $ 9,380 $ 6,540

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

Investments Returns: Expected Value Standard Deviation
Buy stocks $ 9,380 $ 6,540
Buy bonds 7,770 2,420
Buy commodity futures 21,600 25,200
Buy options 20,500 12,700

a-1. Compute the coefficients of variation. (Round your answers to 3 decimal places.) Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a

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

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

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