P8-1 (similar to) Question Help Rate of return Douglas Koola 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 rotum Ayear earlier Investment X had a market value of 13.000, and Investment Y had a market value of $45.000. During the year, investment generated cash flow of 1975 and investment generated cash flow of 56 565. The current market values of investments X and Y are $13,527 and 545.000, 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? 3. The expected rate of return on investment is % Round to two decimal places) Enter your answer in the answer box and the lack Check