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QUESTION 2 Which of the following statements are true? 1. The EAR can be used to compare alternative investments with different compounding periods. II. The

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QUESTION 2 Which of the following statements are true? 1. The EAR can be used to compare alternative investments with different compounding periods. II. The APR or nominal rate is the annual rate required to be quoted by law. III. The EAR is equal to the APR after correcting for inflation IV. The EAR and APR are always expressed as if they were compounded daily. 1 & ll only O I, II & Ill only 1 & IV only III & IV only I, II, III & IV

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