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Your investment advisor informs you that you do not need to pay a fee for his services. Instead, he invests your money for one month
Your investment advisor informs you that you do not need to pay a fee for his services. Instead, he invests your money for one month and keeps all of the proceeds before investing it for you. If your advisor makes and keeps a 1% return on your investment, what is his EAR if the earnings rate could be extrapolated for one year?
A) 1.00%
B) 12.00%
C) 12.68%
D) 126.82% PLEASE SHOW WORK !
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