You have $5,000 to invest. You use all of your $5,000 to purchase shares of an open-end mutual fund at the beginning of the year. The fund has a front end load of 4%. The securities in the fund increase in value by 10% during the year. The funds expense ratio is 2% and is deducted from portfolio assets at year-end. At the end of the year, you redeem your shares.

Suppose instead, you construct a portfolio of stocks that is identical to the portfolio held by the mutual fund. You form the portfolio by buying the securities at the beginning of the year, and you sell the securities at the end of the year. Ignoring your transaction costs (i.e. ignore your trading fees and the bid-ask spread), what rate of return would you earn on this portfolio