James Fromholtz is considering whether to invest in a newly formed investment fund. The fund's investment fund. The fund's investment objective is to acquire home mortgage securities at what it hopes will be bargain prices. The fund sponsor has suggested to james that the fund's performance will hinge on how the national economy performs in the coming year. Specifically, he guggested the following possible outcomes. a) based on teh these potitial outcomes what is your estiate of the expected rate of return from the investment opportunity? b) Calculate the standard deviation in the anticipated returns found in part a. C) would you be intersted in making such and investment? Note that you lose all yoru money in one year if the economy collapses into the worst state or your double your omenty if the economy enters into a rapid expansoion. a No or B yes or C your inerst in making such an investment would depend on your risk tolerance. Info from chart

state of economy	Probablitity	Fund Returns
Rapid expansion and recovery	15%	100%
Modest growth	40%	30%
Continued recession	30%	10%
Falls into depression	15%	-100%