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:
“To what purpose, April, do you return again?
Beauty is not enough.”
—Edna St. Vincent Millay (1892–1950)
“Were not ten made clean? But the other nine, where are they? Was none of them found to return and give praise to God except this foreigner?”
—Bible: New Testament, Luke 17:17,18.
Jesus, after healing ten lepers.
“A pun does not commonly justify a blow in return. But if a blow were given for such cause, and death ensued, the jury would be judges both of the facts and of the pun, and might, if the latter were of an aggravated character, return a verdict of justifiable homicide.”
—Oliver Wendell Holmes, Sr. (1809–1894)