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 retums. A year earlier investment X had a market value of $22,000; and investment Y had a market value of $42,000. During the year, investment X generated cash flow of $1,650 and investment Y generated cash flow of $5,699. The current market values of investments X and Y are $22,810 and $42,000, 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? a. The expected rate of return on investment X is % (Round to two decimal places.)