Question 5.10: Baseball Collectibles as Investments In April 2008, the last...

Fundamentals of Corporate Finance Standard Edition

Baseball Collectibles as Investments

In April 2008, the last baseball hit for a home run by Barry Bonds was auctioned off for about $376,000. The price of the ball was considered a bargain, in part because potential buyers were unsure if Bonds would play again. “Experts” on such collectibles often argue that collectibles such as this will double in value over a 10-year period.
So would the ball have been a good investment?

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