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Data table (Related to Checkpoint a.1) (Expected rate of return) James Fromholtz is considering whethor io invest in a newy lormed inwestrnent fund. The funds

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Data table (Related to Checkpoint a.1) (Expected rate of return) James Fromholtz is considering whethor io invest in a newy lormed inwestrnent fund. The funds investment objective is to acquite home mortgage securtios at what it hopes will be bargain prices. The fund sponsor has suggested to James that the fund serformance will hinge on how the national economy performs in the coming year Specifically, he suggested the following possible outcomess a. Based on those potential outcomes, what is your estimate of the expected rate of retum from this irvestment cppentuauty? b. Would you be interested in making such an investrnent? Note that you lose all your money in one year if the economy collapses into the worat staie of you dentele your money it the economy enters into a rapid expansion a. The expected rate of return from thits investinent opportunity a \%. (Round to two decimal places)

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