10. 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.

Investments Returns Expected Value Standard Deviation

Buy stocks..........................................................$9,140 $6,140

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

Buy commodity futures19,100 26,700

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