(Security market line) Jamen Fromholtz in conndering whether to invest in a nowly formed 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 funds performance will hinge on how the national economy performs in the coming year. Specifically , he suggested the following possible outcomes. James has estimated the expected rate of roturm from this investment is 24.00 percent. Jamen wants to apply his recently acquired understanding of the security market line concept to his analysis a. If the risk free rate of interest is currently 2.8 percent and the beta for the investment is 2.5, what is the slope of the security market line for the real estate mortgage security b. James is also considering the investment of his money in a market index fund that has an expected rate of return of 11 percent. What is the ulope of the security market ine (e, the e. Based on your analysis of parts a and b above, which investment should James take? Why? a. I the risk-free rate of interest in currently 2.8 percent and the beta for the investment in 25. the slope of the security market line for the real estate mortgage security investment in [% (Round to two decimal places) b. James is also com doing the Investment of his money in a market index fund that has an expected rate of return of 15 percent. The slope of the security market Ine (ie, the reward-to-risk ratio) for this investment opportunity is % (Round to two decimal places.) c. Based on your analysis of parts a and b above, which investments Data Table O A. The market index fund. OB. Cannot be determined from the information given in this proble State of Economy Probability Fund Returns Oc. The real estate portfolio Rapid expansion and recovery 5% 100% Modest growth 35% 45% Continued recession 55% 15% Click to select your answers) Falls into depression 5% - 100% (Chor on the concerto copy contento prodot)