(Security market line) James Fromholtz is considering whether to invest in a newly formed investment fund. The fund's investment objective is to acquire home mortgage securities at what hopes walbe bargain prices The lund sponsor has suggested to James that the fund's performance wil 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 return from this investment is 19.00 percen dames wants to apply his recently acquired understanding of the security market line concept to his analysis 2. If the risk-free rate of interest is currently 20 percent and the beta for the investment is 18 what is the slope of the security market line for the real estate mortgage security Investment? b. James is also considering the investment of his money in a market index fund that has an expected rate ofretum of 11 percent What is the slope of the security marketine te the reward to tisk ratio) for this investment opportunity? c. Based on your analysis of parts a and above, which investment should, ames take? Why L. If the risk tree rate of interest is currently 2.0 parcont and the been for the investment is the slope of the security market line for the real estate mortgage security westment is (Round to two decimal places bu James is also considering the investment of his money in a marketindex find that has an expected rate of return of 11 percent. The slope of the security market line the reward-to-risk ratio) for this investment opportunity Round to two decimal places Based on your analysis of parts a and above, wirich inventsibould last Wyslect the best choice below A Cannot be determined from the information on the oblem OBThe market index fund DC The real estate portfolio Data Table - State of Econ Rapla expansion and me Modesto Continued recession Fallinta dari Probability 105, 30% 50% 10 Fund Returns 100% 30% 20% - 100% Lore