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:
“Live within your means, never be in debt, and by husbanding your money you can always lay it out well. But when you get in debt you become a slave. Therefore I say to you never involve yourself in debt, and become no man’s surety. If your friend is in distress, aid him if you have the means to spare. If he fails to be able to return it, it is only so much lost.”
—Andrew Jackson (1767–1845)
“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)
“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)