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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 $ 9,700 $ 5,960
Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk. |
Investments | Returns: Expected value | Standard deviation | ||||
Buy stocks | $ | 9,700 | $ | 5,960 | ||
Buy bonds | 7,980 | 2,900 | ||||
Buy commodity futures | 25,400 | 31,000 | ||||
Buy options | 15,000 | 20,700 | ||||
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(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 | |
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(a-2) | Which one of the following four investments should Tim choose? | ||||||||
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(b) | Which one of the four investments should Mike choose? | ||||||||
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