Annual percentage rates can be converted to effective annual rates by means of the following formula (APR refers to Annual Percentage Rate and m refers to the number of compounds in a year) O a) (APR)(m b) 1 (APR/m)m - 1 c) (periodic rate)(n) d) (APR/m) None of the options In utility function U-Er0.5Ao2, A is a measure of investors' degree of risk aversion. Which of the following statements is incorrect? 0.5. A is a measure of investors' degree of risk aversion. a) For a risk-averse investor, A is greater than O. b) For a risk-neutral investor, A equals to zero. c) For a risk-averse investor, A is zero or less than . d) Risk-neutral investors only care about returns of investments but not risks. e) For a risk lover, A is less than zero. Which of the following statements is incorrect? a) Risk lovers prefer higher risky portfolios given the same expected returns on these investments b) Risk-averse investors require lower risk premium for taking on more risky investments c Risk-neutral investors prefer investments with higher returns regardless of the riskiness of the investments. d) Risk-averse investors require risk premium for bearing risk e) Risk-averse investors require lower risk premium for taking on less risky investments