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Security market line) James Fromhot is considering whether to invest in a newly formed investment fund. The funds Investment atjective is to acquire rome more

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Security market line) James Fromhot is considering whether to invest in a newly formed investment fund. The funds Investment atjective is to acquire rome more securities at what hopes will be buron prices The fund sponsors suggested to James that the fund's peormance willinge on how the national economy perform in the coming year Specifically, he suggested the following possible outcomes James has estimated the spected rate of rulum to this montis 1575 percent Janties wants to apply his recently acquired understanding of the security marketine concepto his analysis his tree rata o interesse 22 percent and the best for the investment is 23 wis the slope of the security market in for the real estate mortgage security Investment? James is also considering the investment this money in a market index fund that has an expeded rate of return of 9 percent What is the slope of the security market in the rowwel for the sent opportunity Based on your aralysis of parts and above, which investment should James tak? Why 1 teratur rest is currenty 22 percent and Debela lot the meestment is 23, w slope of the security market ine for the real estate mortgage security investment Ox Round to wo decimal places Data Table State of Economy Probability Fundas Rapid expansion and recovery 55 100% Modest growth 35% 30% Continued recession 56 15% Falls into depression 5%. 100% on the concerto con grado

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