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Economic Foundations of Finance ( 5 ) Positive Marginal Utility of Wealth ( PMU ) : Rational people prefer more wealth to less wealth, where
Economic Foundations of Finance
Positive Marginal Utility of Wealth PMU: Rational people prefer more wealth to less wealth, where wealth is the value of all of the things owned. As the winner of a local running race, your prize is to select any one of the following items from an online store. The store has a policy whereby any prize can be returned to the store
with the click of a button, without any questions asked, and the price of that prize gets credited immediately to your account. You can then spend this credit to purchase any one or any Combination of these five prizes, all of which you'd like to have. Given this scenario, which
one would you select? and Explain why you choose that
A My Rise To The Top by Al Gore $
B Springsteen's music anthology $
C Woody Allen's Book of Quotes $
D The Best Video Clips of Seinfeld $
E My Life's Story, a book by Donald Trump $
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