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.
Read more about this topic: Dollar Cost Averaging
Famous quotes containing the word return:
“O God of our flesh, return us to Your wrath,
Let us be evil could we enter in
Your grace, and falter on the stony path!”
—Allen Tate (1899–1979)
“The future of humanity is uncertain, even in the most prosperous countries, and the quality of life deteriorates; and yet I believe that what is being discovered about the infinitely large and infinitely small is sufficient to absolve this end of the century and millennium. What a very few are acquiring in knowledge of the physical world will perhaps cause this period not to be judged as a pure return of barbarism.”
—Primo Levi (1919–1987)
“Or ever the silver cord be loosed, or the golden bowl be broken, or
the pitcher be broken at the fountain, or the wheel broken at the
cistern.
Then shall the dust return to the earth as it was: and the spirit
shall return unto God who gave it.
Vanity of vanities, saith the preacher, all is vanity.”
—Bible: Hebrew Ecclesiastes (l. XII, 6–7)