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Trevor Lum is highly risk averse. Which one of the following four investments should he choose? Use coefficient of variation to solve. You must show
Trevor Lum is highly risk averse. Which one of the following four investments should he choose? Use coefficient of variation to solve. You must show the coefficient of your choice to get credit.
Investment Type | Expected Value | Standard Deviation |
Buy stocks | $ 8,800 | $ 5,600 |
Buy Bonds | $ 7,000 | $ 2,060 |
Buy commodity funds | $16,900 | $22,000 |
Buy options | $11,600 | $12,400 |
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