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Which of the following statements are true? I. The EAR should be used to compare alternative investments with different compounding periods. II . The APR
Which of the following statements are true?
I. The EAR should be used to compare alternative investments with different compounding periods.
II The APR or nominal rate is the annual rate required to be quoted in legally binding contracts.
III. The EAR is equal to the APR after multiplying by or compounding periods per year.
IV The EAR and the APR are always expressed as if they were compounded semiannually.
A I, II III & IV
B III & IV only.
C I, II & IV only.
D IV only.
E I & II only.
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