​(Expected rate of​ return) James Fromholtz is considering whether to invest in a newly formed investment fund. The​ f

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 ​(Expected rate of​ return)  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 it hopes will be bargain prices. The fund
sponsor has suggested to James that the​ fund's performance
will hinge on how the national economy performs in the coming year.
​ Specifically, he suggested the following
possible​ outcomes:  
State of Economy
Probability
Fund Returns
Rapid expansion and recovery
5​%
100​%
Modest growth
40​%
45​%
Continued recession
50​%
15​%
Falls into depression
5​%
−100​%
.
a.  Based on these potential​ outcomes, what is your
estimate of the expected rate of return from this
investment​ opportunity?
b.  Would you be interested in making such an​ investment?
Note that you lose all your money in one year if the economy
collapses into the worst state or you double your money if the
economy enters into a rapid expansion.