Question: Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk. Investments Returns: Expected Value Standard Deviation Buy stocks $ 8,970 $ 6,270

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

Investments Returns: Expected Value Standard Deviation
Buy stocks $ 8,970 $ 6,270
Buy bonds 7,410 2,480
Buy commodity futures 22,700 30,900
Buy options 13,100 14,700

a-1. Compute the coefficients of variation. (Round your answers to 3 decimal places.)

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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