You have discovered an investment strategy that can beat the market by $300$

basis points per year. Assume the stock market is expected to return $9\%$ per annum.

Unfortunately, to implement your strategy, you will have to turn over your portfolio

three times a year. Think of this as rebalancing $($selling and purchasing$)25\%$ of

your portfolio every month. You have very good traders, who can execute trades at

a cost of only $7\mathrm{.}5$ cents per transaction $(15$ cents round$-$trip$)$ on a $$30$ stock. Does

this strategy make sense?