Which one of the following investments provides the lowest effective annual rate of return (i.e., which of the following investments is the WORST (i.e., the smallest EAR), assuming an investor wants to avoid earning the lowest return over an investing horizon of 10 years)?

a. An investment which has a 1.85 percent annual nominal rate, but with semi-annual compounding.

b. An investment which has a 1.84 percent annual nominal rate, but with quarterly compounding.

c. An investment which has a 1.82 percent annual nominal rate, but with monthly compounding.

d. An investment which has a 1.79 percent annual nominal rate, but with daily (365) compounding. e. An investment which has a 1.75 percent annual nominal rate, but with continuous compounding.