Famed Investments has a C$25 million portfolio. It follows an active approach to investment management and, on average, turns the portfolio over twice a year. That is, it expects to trade 200 percent of the value of the portfolio over the next year. Every time Famed Investments buys or sells securities, it incurs execution costs of 75 basis points, on average. It expects an annual return before execution costs of 8 percent.

1. What is the expected return net of execution costs?