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Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk. Investments Returns: Expected Value Standard Deviation Buy stocks $ 9,450 $ 6,540

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

Investments Returns: Expected Value Standard Deviation
Buy stocks $ 9,450 $ 6,540
Buy bonds 7,520 2,660
Buy commodity futures 19,400 22,400
Buy options 14,900 16,600

a-1. Compute the coefficients of variation. (Round your answers to 3 decimal places.)

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 commodity futures
Buy options

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