a) You have $100,000 that you would like to invest. You have three investment choices: Savings Account A which earns 6% APR compounded annually, Savings Account B which earns 5.8% APR compounded monthly, or Savings Account C which earns 5.9% APR compounded quarterly. Which account should you choose? a) Savings Account A b) Savings Account B c) Savings Account C

b)Which of the following is an example of the so called `agency problem' or `agency costs' in a large corporation:

a) managers foregoing salary to improve the firm's earnings

b) managers foregoing value enhancing new projects in order to reduce the risk of being fired c) managers updating stockholders of problems at the annual stockholders' meeting

d) all of the above.