The fed's main policy tools one of the? fed's policy tools is? the discount? rate, which is the interest rate at which the fed stands ready to lend reserves to commercial banks the monetary? base, which is the sum of coins and federal reserve notes the open market? operations, which are purchase of government securities from the government the required reserve? ratio, which equals 3 percent on checkable deposits and 10 percent on savings deposits

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 returns. a year earlier, investment x had a market value of $27 comma 000; and investment y had a market value of $46 comma 000. during the year, investment x generated cash flow of $2 comma 025 and investment y generated cash flow of $ 6 comma 770. the current market values of investments x and y are $28 comma 582 and $46 comma 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?