Rate of return. Douglas Koel, a finandial anslyst for Orango industrios, wishes to estmate the rale of return for two similar-tisk investments, X and Y, Douglas's research indicales that the immodiate past returns will serve as reasonable ostmates of future returns. A year earlec, itvestrent X had a maket value of $27,000 and itrvestmont Y had a market value of $56, 000. During the yeat, investment X generated cash flow of $2.025 and ievestment Y generated cash flow of $7,288. The current market values of investments X and Y are $20.780 and $58.000, respectivey. a. Calculate the expected tate of return on investewents X and Y using the most recent years dsta b. Assuming that the two inveltments ace equaly risty, which one should Douglas recommench Why? 4. The expocted rale of return on imestment X is 4. (Round to two decimal places.)