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:
“And the Stranger will depart and return to the desert.
O my soul, be prepared for the coming of the Stranger,
Be prepared for him who knows how to ask questions.”
—T.S. (Thomas Stearns)
“The soul establishes itself.
But how far can it swim out through the eyes
And still return safely to its nest?”
—John Ashbery (b. 1927)
“To what purpose, April, do you return again?
Beauty is not enough.”
—Edna St. Vincent Millay (1892–1950)