The SHGA Fund has a front-end load of 0%, a back-end load of 15%, and an expense ratio of 0%. NAV of the fund at the beginning of the year (t=0) is $20.

During the year, the fund paid out dividend distributions of $1.00 to investors. At the end of the year, the NAV is $25.

If an investor sells her fund shares at the end of the year, what is her investment return?

1. 6.25%

2. 7.50%

3. 8.75%

4. 11.25%

5. None of the above