3. (Factors affecting return) During a stamp collector convention, the chairman spoke about the profitability of investing in rare stamps. “Last year I invested

$150,000 in rare stamps. These stamps are now worth $200,000 according to the catalog, meaning an annual return of 33%. For comparison, the average return in the stock market in the last 30 years was only 16%.” Find (at least)

three problems with the chairman’s argument.