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 variation to help you in your choice.

b. Which one of the four investments should Mikechoose?

Returns: Investments Buy stocks. Buy bonds. Buy commodity futures Buy options Standard Deviation S 6,140 2,560 26,700 18,200 Expected Value $9,140 7,680 19,100 17,700

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