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.
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Famous quotes containing the word return:
“In my walks I would fain return to my senses.”
—Henry David Thoreau (1817–1862)
“The mother as a social servant instead of a home servant will not lack in true mother duty.... From her work, loved and honored though it is, she will return to her home life, the child life, with an eager, ceaseless pleasure, cleansed of all the fret and fraction and weariness that so mar it now.”
—Charlotte Perkins Gilman (1860–1935)
“The return of the asymmetrical Saturday was one of those small events that were interior, local, almost civic and which, in tranquil lives and closed societies, create a sort of national bond and become the favorite theme of conversation, of jokes and of stories exaggerated with pleasure: it would have been a ready- made seed for a legendary cycle, had any of us leanings toward the epic.”
—Marcel Proust (1871–1922)