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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 $ 9,590 $ 6,090
Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk.
Investments | Returns: Expected Value | Standard Deviation | ||||
Buy stocks | $ | 9,590 | $ | 6,090 | ||
Buy bonds | 7,890 | 2,230 | ||||
Buy commodity futures | 23,900 | 22,100 | ||||
Buy options | 13,100 | 18,800 | ||||
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? multiple choice 1
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Buy bonds
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Buy stocks
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Buy commodity futures
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Buy options
b. Which one of the four investments should Mike choose? multiple choice 2
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Buy bonds
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Buy stocks
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Buy options
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Buy commodity futures
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