An individual investor invests one million dollars in stock mutual funds and one million dollars in bond mutual funds. She expects to earn a 2% alpha on her stocks, but no alpha on her bonds. The bonds are expected to earn 5% (taxed as ordinary income), while the stocks are expected to earn a 9% plus alpha (taxed as capital gains). She expects to pay management fees and costs of 150 basis points (1.50%) on her entire portfolio which she can deduct from her bond income returns. Including state taxes, she is in the 40% ordinary tax bracket, and she pays 20% on her capital gains (assume realized every year.) What is her expected net return (in percent) after fees and taxes