Question: For a given stated annual rate, the effective annual rate (EAR): a. can be found by dividing the stated rate by the number of compounding

For a given stated annual rate, the effective annual rate (EAR):

a.

can be found by dividing the stated rate by the number of compounding periods
b.

is at a minimum when interest is continuously compounded
c.

is greater in all cases
d.

decreases if the number of compounding periods is greater than the number of holding periods
e.

increases as compounding frequency increases

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