Question
Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk. Investments Returns: Expected Value Standard Deviation Buy stocks $9,300 $5,660 Buy bonds
Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk.
Investments Returns: Expected Value Standard Deviation
Buy stocks $9,300 $5,660
Buy bonds 7,580 2,390
Buy commodity futures 26,100 26,700
Buy options 14,200 13,600
a-1.Compute the coefficients of variation.(Round your answers to 3 decimal places.)
Coefficient of Variation
Buy stock. ___________________
Buy bonds. ___________________
Buy commodity futures _________
Buy options ___________________
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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