Question $4$

Convert $12\%$ APR compounded monthly to an effective annual rate $($EAR$).$

$10\%$ EAR $12\%$

$12\%$ EAR $13\%$

$13\%$ EAR $14\%$

$14\%$ EAR

Question $5$

If an asset's total nominal return for a period is $11\mathrm{.}5\%$ and its real return is $7\mathrm{.}73\%,$ what is

the inflation during the period?

$0\%$ inflation $2\mathrm{.}5\%$

$2\mathrm{.}5\%$ inflation $5\mathrm{.}0\%$

$5\mathrm{.}0\%$ inflation $7\mathrm{.}5\%$

$7\mathrm{.}5\%$ inflation