Question

18) Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk.
 InvestmentsReturns:
Expected ValueStandard
Deviation  Buy stocks$9,590 $5,740   Buy bonds 7,050  2,900   Buy commodity futures 23,600  29,900   Buy options 20,000  16,500 
 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  
 a-2.Which one of the following four investments should Tim choose?  
 Buy bondsBuy stocksBuy commodity futuresBuy options 
 b.  Which one of the four investments should Mike choose?   Buy bondsBuy stocksBuy commodity futuresBuy options

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