Fred, who is a divisional manager, complains bitterly that his division is required to show estimated rates of return on their proposed projects that are 2 percent higher than that required of the other divisions. Which of the following are apt to relate to this requirement? I. Fred tends to overestimate the projected sales of his proposed projects. II. Fred tends to overestimate the variable costs of his proposed projects. III. The firm considers Fred's division to be the most efficient. IV. The firm considers Fred's division the riskiest division within the firm. Select one: O a. Ill only O b. IV only O c. ll and IV only O d. I and IV only O e. Il and Ill only