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:
“I am apt to think, if we knew what it was to be an angel for one hour, we should return to this world, though it were to sit on the brightest throne in it, with vastly more loathing and reluctance than we would now descend into a loathsome dungeon or sepulchre.”
—George Berkeley (1685–1753)
“I never saw so sweet a face
As that I stood before:
My heart has left its dwelling-place
And can return no more.”
—John Clare (1793–1864)
“Or ever the silver cord be loosed, or the golden bowl be broken, or
the pitcher be broken at the fountain, or the wheel broken at the
cistern.
Then shall the dust return to the earth as it was: and the spirit
shall return unto God who gave it.
Vanity of vanities, saith the preacher, all is vanity.”
—Bible: Hebrew Ecclesiastes (l. XII, 6–7)