In the summer of 2002, Kelly Flatley and Brendan Synnott joined forces to launch a homemade granola business out of Flatley's parents' home. They had no advertising budget, so they had to find other ways to let consumers know about Bear Naked Granola. The entrepreneurs went door-to-door to small specialty and natural food stores. They also set up tables and tents at community events and 5K charity runs where they gave away samples of their granola. From this information, you can infer that Flatley and Synnott used the method for promoting their product.

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?