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if you could show work please Rate of return Douglas Keel, a financial analyst for Orange Industries, wishes to estimate the rate of return for
if you could show work please
Rate of return 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 $14, 000; investment Y had a market value of $42, 000. During the year, investment X generated cash flow of $050 and investment Y generated cash flow of $5, 021. The current market values of investments X and Y are $14, 527 and $42, 000, respectively. Calculate the expected rate of return on investments X and Y using the most recent year's data. assuming that the two investments are equally risky, which one should Douglas recommend? WhyStep by Step Solution
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