Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk. Investments Buy stocks...

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Question

Answer 1

Answer #1

a1.	Coeffecient of variation
Buy stocks	= 5600/8800	0.636
Buy bonds	= 2060/7000	0.294
Buy commodity futures	= 22100/16900	1.308
Buy options	= 12400/11600	1.069
a2. Tim should choose Bonds
b. Mike should choose Commodity Futures

Answer 2

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