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    Coefficient of Variation Risk-Averse

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    Tom rears is highly risk-averse while Sonny Outlook actually enjoys taking a risk.

    A. which one of our four investments should Tom choose? Compute coefficients of variation to help you in your choice
    B. which one of our four investments should Sonny choose?

    Investments Returns expected value Standard deviation
    Buy stocks $7,000 $4,000
    Buy bonds 5,000 1,560
    Buy commodity futures 12,000 15,100
    Buy options 8.000 8,850

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    https://brainmass.com/business/finance/coefficient-variation-risk-averse-123788

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    Tom rears is highly risk-averse while Sonny Outlook actually enjoys taking a risk.
    A. which one of our four investments should Tom choose? Compute coefficients of variation to help you in your choice
    B. which one of our four investments should Sonny ...

    Solution Summary

    The solution compares investments based on risk averse behaviours.

    $2.19