(Related to Checkpoint 8.1) (Expected rate of return) James Fromholtz is considering whether to invest in a newly formed investment fund. The funds investment objective is to acquire home mortgage secues 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 suggested the following possible outcomes: - a. Based on these potential outcomes, what is your estimate of the expected rate of return from this investment opportunity? b. Would you be interested in making such an investment? Note that you lose all your money in one year if the economy colapses into the wont state or you double your money if the economy and 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) Data table State of Economy Probability Fund Naturs 5% 100% Rapid expansion and recovery Modest growth 45% 30% Continued recession 43% IN OA. Your interest in making such an investment would depend on your risk tolerance. If you do not OB. Yes, I would be interested in making such an investment. The economy is most likely to begin a OC. No, I would not be interested in making such an investment. The economy is most likely to sink Falls into depression 5% -100% (Click on the loon in order to copy a contents into a sprache)