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Total Rate of return you wish to calculate the total rate of return for two similar-risk investments, X and Y. Douglas's research indicates that the

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Total Rate of return you wish to calculate the total 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 $20,000, and investment Y had a market value of $55,000. During the year, investment X generated cash flow of $1,500 and investment y generated cash flow of $6,800. The current market values of investments X and Y are $21,000 and $55,000, respectively, a. The expected rate of return on investment X is % (Round to two decimal places.) The expected rate of return on investment Y is II% (Round to two decimal places.) b. Assuming that the two investments are equally risky, which one should you recommend? Why? (Select the best answer below.) O A. You should recommend investment X because it has a higher rate of return and equal risk. O B. You should recommend investment Y because it has a higher rate of return and equat risk OC. You should recommend investment X because it has a higher rate of return and lower risk OD. You should recommend investment Y because it has a lower rate of return and equal risk. Click to select your answers) generated cash flow of $6,800. The current market values of investments X and Y are $21,000 and $55,000, respectively a. Calculate the total 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 you recommend? Why? ciment is %. (Round to two decimal places.)

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