Because of a global pandemic, a nation cuts its interest rates in an effort to stimulate its economy. What is the likely effect of this interest rate cut on the value of the nation’s currency? A)The decrease in interest rates will likely encourage foreign investment in the nation’s currency and lead to a devaluation.
B)The decrease in interest rates will likely discourage foreign investment in the nation’s currency and lead to a devaluation.
C)The decrease in interest rates will likely encourage foreign investment in the nation’s currency and lead to an appreciation.
D)The decrease in interest rates will likely discourage foreign investment in the nation’s currency and lead to an appreciation.

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?