Return
Assuming that the same amount of money is invested each time, the return from dollar cost averaging on the total money invested is
where is the final price of the investment and is the harmonic mean of the purchase prices. If the time between purchases is small compared to the investment period, then can be estimated by the harmonic mean of all the prices within the purchase period.
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Famous quotes containing the word return:
“When we suffer anguish we return to early childhood because that is the period in which we first learnt to suffer the experience of total loss. It was more than that. It was the period in which we suffered more total losses than in all the rest of our life put together.”
—John Berger (b. 1926)
“I never saw so sweet a face
As that I stood before:
My heart has left its dwelling-place
And can return no more.”
—John Clare (1793–1864)
“At twelve, the disintegration of afternoon
Began, the return to phantomerei, if not
To phantoms. Till then, it had been the other way:
One imagined the violet trees but the trees stood green,
At twelve, as green as ever they would be.
The sky was blue beyond the vaultiest phrase.”
—Wallace Stevens (1879–1955)