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 variations to help you in your choice.

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

Investments Returns: Standard

Expected Value Deviation

Buy Stocks.............................$9,140 $6,140

Buy bonds................................7,680 2,560

Buy commodity future............19,100 26,700

Buy options.............................17,700 18,200

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

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