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:
“The return to solid values is always hard.... Distress, panic, and hard times have marked our pathway in returning to solid values.”
—James A. Garfield (1831–1881)
“... one cannot be happy in exile or in oblivion. One cannot always be a stranger. I want to return to my homeland, make all my loved ones happy. I see no further than this.”
—Albert Camus (1913–1960)
“Sir Francis, Sir Francis, Sir Francis is come;”
—Unknown. Upon Sir Francis Drake’s Return from His Voyage about the World, and the Queen’s Meeting Him (l. 1)