27. Which of the following statements is true of annual percentage rate (APR)? A) The APR is similar to quoted interest rate which is a simple annual rate. B) The APR calculation adjusts for the effects of compounding and, hence, the time value C) D) of money The APR is the true cost of borrowing and lending. The APR takes compounding into account. 28. Niles is making an investment with an expected return of 12 percent. If the standard deviation of the return is 4.5 percent, and if Niles is investing S100,000, then what dollar amount is Niles 90 percent sure that he will have at the end of the year? (Do not round intermediate computations) A) $100,000.00 B) S104,597.50 C) S116,500.00 D) $119,402.50 29. Given the historical information in the chapter, which of the following investment classes had the greatest average return? A) Intermediate-Term Government Bonds B) Long-Term Govemment Bonds C) Large U.S. Stocks