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What is steve major error

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Reference no: EM132995989

Question - Steve is offered an investment where for every $1.00 invested today, he will receive $1.10 at the end of three years. Steve concludes that in three years he will have $1.10 for every $1.00 invested and so this investment will increase his personal value. What is Steve's major error in reasoning when making this decision?

A. He is equating present and future values, when they should not be so easily equated

B. He is ignoring possible alternative investments that can make more money

C. He is ignoring the possibility of inflation

D. All of the above

Reference no: EM132995989

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