(Security market line) James Fromholiz is considering whether to invest in a newily formed investment fund. The fund's investment objective is to acquire horse mortgage securites at ahat e hopes will be bargain prices. The fund sponsor has suggested to James that the fund's performance will hinge on how the naficnal econorny performs in the coming year. Specifcaly, he suggested the following possible outconves: James has estimated the expected rate of return from this investment is 26.75 percent. James wants to apply his recently acquired understanding of the security markot 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 4.5 . what is the slope of the security market line for the real estate morigage securty investment? b. James is also considering the investment of his money in a market index fund that has an expected rate of return of 8 percent. What is the slope of the security markat line (1.e, the riward-ta-risk ratio) for this investment opportunity? c. Based on your analysis of parts a and b above, which investment should James take? Why? a. If the risk-free rate of interest is currently 2.0 percent and the beta for the investment is 3.3 , the slope of the securty market ine for the real estate mortgage securiy investrent is (Round to two decimal places.) for this investment opportunity is K. (Round to two dectimal places.) c. Based on your analysis of parts a and b above, which investment should James take? Why? (Select the beat choice below) A. The market index find. L Cannot be determined trom the information given in this pocblem. The real estave portiolio. Data table