Question: Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk. Investments Returns: Expected Value Standard Deviation Buy stocks $ 9,140 $ 6,300

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

Investments Returns: Expected Value Standard Deviation
Buy stocks $ 9,140 $ 6,300
Buy bonds 7,940 2,500
Buy commodity futures 21,600 26,000
Buy options 13,700 19,700

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?
Buy bonds
Buy stocks
Buy commodity futures
Buy options

b. Which one of the four investments should Mike choose?
Buy bonds
Buy stocks
Buy options
Buy commodity futures

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