Q. Suppose typical index fund or ETF charges management fee of= 0.10% each year also has low turnover resulting in trading costs of another= 0.05% each year. Suppose that the actively managed stock mutual fund charges the management fee of= 1.0% also has much higher turnover resulting in trading costs of the extra 0.5% each year. Actively managed fund has the possibility to out each form market while index fund will deliver return of market (less management also trading costs). Find out excess return each year should the actively managed fund earn to overcome higher fees?