A portfolio manager follows an active international asset allocation strategy. The average execution cost for a buy or a sell order is forecasted at 0.8%. On average, the manager turns over the portfolio once a year. Various administrative costs include a custodial cost amount of 0.5% per year of assets under management. The annual management fee is 1% of assets under management. The annual expected return before costs is 14% compared to an expected return of 9% on a passive global benchmark (some global index). (a) What is the annual expected return net of execution costs? (b) What is the net annual expected return for the client? (c) Should the client expect the portfolio to outperform the global index used as a benchmark