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:
“If he should take back his spirit to himself, and gather to himself his breath, all flesh would perish together, and all mortals return to dust.”
—Bible: Hebrew, Job 34:14-15.
“At twelve, the disintegration of afternoon
Began, the return to phantomerei, if not
To phantoms. Till then, it had been the other way:
One imagined the violet trees but the trees stood green,
At twelve, as green as ever they would be.
The sky was blue beyond the vaultiest phrase.”
—Wallace Stevens (1879–1955)
“Athletes have studied how to leap and how to survive the leap some of the time and return to the ground. They don’t always do it well. But they are our philosophers of actual moments and the body and soul in them, and of our manoeuvres in our emergencies and longings.”
—Harold Brodkey (b. 1930)