Question
Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk. Investments Returns: Expected Value Standard Deviation Buy stocks $ 9,010 $ 6,470
Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk.
| Investments | Returns: Expected Value | Standard Deviation | ||||
| Buy stocks | $ | 9,010 | $ | 6,470 | ||
| Buy bonds | 7,030 | 2,460 | ||||
| Buy commodity futures | 26,800 | 23,900 | ||||
| Buy options | 21,200 | 21,500 | ||||
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 options | |
| Buy commodity futures |
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. Mcguigan, William J. Kretlow
9th Edition
032416470X, 9780324164701
