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Rate of return Douglas keel, a financial analyst for Orange Industries, wishes to estimate the rate of return for two smiltisk investments X and Y
Rate of return Douglas keel, a financial analyst for Orange Industries, wishes to estimate the rate of return for two smiltisk 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 $18,000, and Investment Y had a market value of 564,000 During the year investment X generated cash low of $1,350 and investinent generated cash flow of 56 047 The current market values of investments X and Y are 519015 and 564 000 respectively a Calculate the expected rate of return on investments X and Y using the most recent years data b. Assuming that the two investments are equally risky which one should Douglas recommend? Why
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