Business, 06.12.2019 02:31, mrsjenrucker

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 returns. a year earlier, investment x had a market value of $20,000; 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. 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?

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Douglas keel, a financial analyst for orange industries, wishes to estimate the rate of return for t...