Which of the following statements is TRUE with regard to the ERR?
A) The approximate ERR is just a proxy for the IRR.
B) The precise ERR is a proxy for the IRR.
C) For a simple investment, the precise ERR is greater than the IRR.
D) For a simple investment, the approximate ERR is greater than the IRR.
E) The approximate ERR can be used to evaluate a project, whether a simple investment or not.
Correct Answer:
Verified
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