Tames Fromholte is consideting whether to invest in a newly formed inyestment fund. The fund's investment objective is to acquire home mortgage securities at whatit th performartegain prioes. Tho fund sponsor has suggested to James that the fundis year. performance will hinge on how the national cconomy performs in the coming year. a) Based on these potential outeomes, Writ b) Would you be interested in making stich an investment? Note that you lose all your money in one year if the economy collipses into the worst state or you double your money if the cconomy enters into a rapid expansion. (Hint calculate the Standard deviation and comment on the risk-return tradeoff)