You have $5000 to invest and must choose between a no-load, open-end mutual fund with an annual expense ratio of 0.60 percent but no transaction cost and an ETF with an annual expense ratio 0.3 of percent and a transaction cost of $20.

a. Calculate which is the lower cost alternative to purchase.

b. Calculate the net proceeds associated with each option if you hold the mutual fund for 6 months and sell after a gain of percent per 6 months.

c. Calculate the net proceeds associated with each option if you hold the mutual fund for year and achieve a gain of percent per year.

d. Calculate the net proceeds associated with each option if you hold the mutual fund for year and experience a loss of percent per year.

a. Calculate which is the lower cost alternative to purchase. (Select the best answer below.)

A.The cost is $0 to purchase the no-load fund versus $20 to purchase the ETF. Regardless of the initial investment amount, the lower cost alternative to purchase is the no-load, open-end mutual fund.

B. The cost is $0 to purchase the ETF versus $20 to purchase the no-load fund. Regardless of the initial investment amount, the lower cost alternative to purchase is the ETF.

b. If you hold the mutual fund for 6 months and sell after a 6-month gain of 11%, the net proceeds associated with the no-load fund are $________. (Round to the nearest cent.)

If you hold the mutual fund for 6 months and sell after a 6-month gain of 11%, the net proceeds associated with the ETF are $______. (Round to the nearest cent.)

c. If you hold the mutual fund for 1 year and sell after a 1-year gain of 10%, the net proceeds associated with the no-load fund are $______ (Round to the nearest cent.)

If you hold the mutual fund for 1 year and sell after a 1-year gain of 10%, the net proceeds associated with the ETF are $_______. (Round to the nearest cent.)

d. If you hold the mutual fund for 1 year and sell after a 1-year loss of 8%, the net proceeds associated with the no-load fund are $_____ (Round to the nearest cent.)

If you hold the mutual fund for 1 year and sell after a 1-year loss of 8%, the net proceeds associated with the ETF are $_____(Round to the nearest cent.)