Henry Is an economist and wants to understand the relationship between inflation and consumer spending habits. For his research, he needs the Consumer Price Index for 2014 and the Inflation rate. Based on the prices of goods given, what will he find to be the CPI and Inflation rate for
2014? Assume that a consumer's basket for three consecutive years consists of the following:
Year
Price of an Apple
Number of Apples
Price of an Orange
Number of Oranges
Consumed
Consumed
2012
2
3
3
2013
2014
Consider 2012 to be the base year.
O A. 100 CPI, 49.56 percent Inflation
O B. 165 CPI, 45.40 percent Inflation
O C. 185 CPI, 55.35 percent inflation
O D. 175 CPI, 60.56 percent inflation
E. 125 CPI,
50.60 percent inflation

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?