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)
“I thought to myself that it was still another Sunday gone by, that Mother was now buried, that I was going to return to work and that, after all, nothing had changed.”
—Albert Camus (1913–1960)
“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)