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8.1) (Expected rate of return) James Fromholtz is considering whether to invest in a newly formed hat it hopes will be bargain prices. The fund

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8.1) (Expected rate of return) James Fromholtz is considering whether to invest in a newly formed hat it hopes will be bargain prices. The fund sponsor has suggested to James that the fund's performat ggested the following possible outcomes: ntial outcomes, what is your estimate of the expected rate of return from this investment opportunity? sted in making such an investment? Note that you lose all your money in one year if the economy collap Data table year. Specifically, he suggested the following possible outcomes: a. Based on these potential outcomes, what is your estimate of the expected rate of return from this investment opport b. Would you be interested in making such an investment? Note that you lose all your money in one year if the econo enters into a rapid expansion. a. The expected rate of return from this investment opportunity is \%. (Round to two decimal places) b. Would you be interested in making such an investment? (Select the best choice below.) A. No, I would not be interested in making such an investment. The economy is most likely to sink into a depres: B. Yes, I would be interested in making such an investment. The economy is most likely to begin a rapid expans C. Your interest in making such an investment would depend on your risk tolerance. If you do not like risk you s make this investment

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