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Douglas Keel, a financial analyst for Orange Industries, wishes to estimate the rate of return for two similar-risk investments, X and Y. Douglas's research indicates

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Douglas Keel, a financial analyst for Orange Industries, wishes to estimate the rate of return for two similar-risk investments, X and Y. Douglas's research indicates that the immediate past returns will serve as reasonable estimates of future returns. A year earlier, investment X had a market value of $27.000; and investment Y had a market value of \$64,000. During the year, investment X generated cash flow of $2,025 and investment Y generated cash flow of $ 7.327. The current market values of investments X and Yare $27,781 and $64,000, respectively, a. Calculate the expected rate of return on investments X and Y using the most recent year's data, b. Assuming that the two investments are equally risky, which one should Douglas recommend? Why

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