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:
“Lise: Look, monsieur, I don’t know what type of girl you think I am, but I’m not. And now I would like to return to my friends.
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Lise: You should see me now.
Jerry: Ouch.”
—Alan Jay Lerner (1918–1986)
“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 have often wondered how they manage to get return envelopes which miss, by one-quarter of an inch, fitting the blank you are supposed to return. They say, “Please fill out and return the enclosed envelope,” and the enclosed envelope is always one-quarter of an inch too small.”
—Robert Benchley (1889–1945)