What should be the market equilibrium price, Microeconomics

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What should be the market equilibrium price

Problem: An asset sells for price Po = $190 today, and people expect to be able to sell them for P1 = $210 next year. a. What is the (expected) rate of return on this asset? b. If the interest rate in the economy is i=5%, what do you expect to happen to the asset price Po? Explain. What should be the market equilibrium price Po?

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Microeconomics: What should be the market equilibrium price

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