PW: Pick One

Suppose you have the choice of three assets:

A that costs $10 now and has a $30 payoff in period ten.
B that costs $10 now and has a $31 payoff in period ten.
C that costs $10 now and has a $31 payoff in period nine.
Given that you must choose one, which asset would you choose?

Question options:

  • A
  • B
  • C
  • Can't tell given the data presented.
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