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No, this fund is not attractive to you because it is below the expected rate of return of 10.4%.
A mutual fund is an investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.
The expected rate of return is the return investors anticipate receiving from an investment over the long term. It is calculated by multiplying the probability of each possible outcome by the expected return of that outcome and then summing the results.
Expected rate of return = 4% + 0.6(14% - 4%) = 10.4%
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