The effective annual rate (EAR) will be higher than the annual percentage rate (or APR) under Select one: O a monthly compounding b. quarterly compounding c. semi-annual compounding d. All of the choices are correct The difference between an ordinary annuity and annuity due is that 12 Select one: a. in ordinary annuity payments are made at the beginning of each period while in annuity due, these are made at the end of the period b. in ordinary annuity payments are made at the end of each period while in annuity due, these are made at the beginning of the period c. in both types of annuity, payments are made at the beginning of each period but in annuity due there is an extra payment at the end Market compensates (or rewards) systematic risk of a security because: Select one: a. it is due to market movements which cannot be eliminated through diversification b. it is a microeconomic risk c. that risk is unique to a firm or an industry d. it is the risk of doing business anyway