Question: Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk. Investments Returns: Expected Value Standard Deviation Buy stocks $ 9,010 $ 6,470
| Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk. |
| Investments | Returns: Expected Value | Standard Deviation | ||||
| Buy stocks | $ | 9,010 | $ | 6,470 | ||
| Buy bonds | 7,030 | 2,460 | ||||
| Buy commodity futures | 26,800 | 23,900 | ||||
| Buy options | 21,200 | 21,500 | ||||
| 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? | ||||||||
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| b. | Which one of the four investments should Mike choose? | ||||||||
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