1. You must choose between a no-load, open-end mutual fund with an annual expense ratio of 0.85 percent but no transaction cost and an ETF with an annual expense ratio of 0.25 percent and a transaction cost of $20.00.

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

   2. Calculate which is the lower cost to own over 6 months, if you sell after 7 percent gain.

   3. Calculate which is the lower cost to own over 2 years, if you achieve a 10 percent per year gain.

   4. Calculate which is the lower cost to own over 2 years, if you experience a 10 percent per year loss.