expected rate of return

(Rolated to Checkpoint B.1) (Expected rate of return) James Fromholy, is considering whether to inveat in a newly formed inventment fund. The fund's investment objective is to acquire home mortgage securties at what it hopes will be bargain prices. The fund sponsor has suggestod to James that the funds performance wit hinge on how the national econorny performs in the coming year: Specifically, the sugpested the following possible oulcomes: a. Based on these potential cutcomes, what is your estimate of the expected rate of return from this investment opportunity? b. Would you be interested in making such an hvestment? Note that you lose al your money in one year if the economy collapses into the worst state or you double your enoney if the economy enters into a rapid expansion. a. The expected rale of retum from this investment opportunity is 6. (Round to two decimal places) Data table