Answer all questions and show all work, if applicable. Partial credit will not be provided without work, if work can be shown.

Tim Shy is highly risk-averse and Mike Aggressive enjoys risky investments.

a) Which of the four investments listed below should Tim choose?

b) Compute the Coefficient of Variation for each investment choice. Investments Expected Value Returns Standard Deviation Buy Stocks $9,140 $6,140 Buy Bonds $7,680 $2,560 Buy Commodity Futures $19,100 $26,700 Buy Options $17,700 $18,200