You have $5,500.00 to invest and must choose between a no-load, open-end mutual fund with an...

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You have $5,500.00 to invest and must choose between a no-load, open-end mutual fund with an annual expense ratio of 0.75 percent but no transaction cost and an ETF with an annual expense ratio of 0.20 percent and a transaction cost of $20.00. 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 7%, 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 7%, 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 6%, 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 6%, 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 4%, 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 4%, the net proceeds associated with the ETF are $. (Round to the nearest cent.) You have $5,500.00 to invest and must choose between a no-load, open-end mutual fund with an annual expense ratio of 0.75 percent but no transaction cost and an ETF with an annual expense ratio of 0.20 percent and a transaction cost of $20.00. 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 7%, 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 7%, 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 6%, 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 6%, 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 4%, 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 4%, the net proceeds associated with the ETF are $. (Round to the nearest cent.)

Answer rating: 100% (QA)

SOLUTION a The lower cost alternative to purchase is the noload openend mutual fund The cost is 0 to purchase the noload fund versus 20 to purchase th... View the full answer