Assume that you have made a $15,000 investment in a mutual fund that charges an

8.5% load. The expense ratio of the fund is 1.25% per year. (These two sources of

expense are the only two that you will experience.) The objective of the fund is to

outperform the S&P 500. It is now five years later and an S&P 500 index fund has

provided a geometric mean return of 8% per year over this period after all fees and

expenses. You have made no contributions or withdrawals from your mutual fund

investment during this time. What rate of return must you have earned on your fund to

merely break even with the index fund?