(Security market line) James Fromholz is considering whether to irwest in a newly formed investrment fund. The fundts itrvestment objective is to acquire home morgage securtios 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 yoar. Specficaly, he suggested the following poss ble outcomes: James has estimated the expected rate of retum from this irvestment is 22.00 percent, James wants to apply his recertly acquired understanding of the security market line concopt to his analysis. a. If the risk-free rate of interest is currency 2.8 percent and the beta for the investment is 3.6 , what is the slope of the securty market line for tine real estate mortgage socurity invesiment? b. James is also considering the investrment of his money in a maket index fund that has an expected rate of retum of 8 percent. What is the slope of the security market line (f.e. the reward to risk ratio) for this investment opportunity? c. Based on your analysis of parts a and b above, which investment ahould Jomes take? Why? Data table farty market line for the real estabs mortgage secunty investment is is (Round