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(Security market line) Jares Fronholzz is considering whether to invest in a newly formed imvestment fund. The funds imvestment objective is to acquire heme mortgage

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(Security market line) Jares Fronholzz is considering whether to invest in a newly formed imvestment fund. The funds imvestment objective is to acquire heme mortgage securties at what it hopes wi be bargan fricot. The fund sponsor has suggested to dames that the find's performance wil hinge on how the national economy perfomis in the coming year, Specifilly, he suggestad the folowing posible oudsomes: concect te his andyss. James has estmated the expected rate of retum trom this investment is 19.00 percent. James wants to apply his recently acquired understanding of the aecinity maket ine rabiog for tikis ivestment osporturity? c. Based on your analysis of parte a and b above, which ivestiment aheuld James take? Why? W. If the nisk tree rate of imterast is currenty 2.8 percent and the bea for the imvestmont is 1.2 , the slope of the security makket lne for the real estate martgage security investinare a decimal places.) Data table

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