Which of the Following Statements Is TRUE with Regard to the ERR

Multiple Choice

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.