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 traveller who has gone to Italy to study the tactile values of Giotto, or the corruption of the Papacy, may return remembering nothing but the blue sky and the men and women who live under it.”
—E.M. (Edward Morgan)
“Our needs hourly
Climb and return like angels.
Unclosing like a hand,
You give for ever.”
—Philip Larkin (1922–1986)
“Then came the Lord Chamberlain with his white staff,
And all the people began to laugh;
And then the Queen began to speak,
‘You’re welcome home, Sir Francis Drake.’”
—Unknown. Upon Sir Francis Drake’s Return from His Voyage about the World, and the Queen’s Meeting Him (l. 5–8)