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:
“If a man, notoriously and designedly, insults and affronts you, knock him down; but if he only injures you, your best revenge is to be extremely civil to him in your outward behaviour, though at the same time you counterwork him, and return him the compliment, perhaps with interest.”
—Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)
“To save the theatre, the theatre must be destroyed, the actors and actresses must all die of the plague. They poison the air, they make art impossible. It is not drama that they play, but pieces for the theatre. We should return to the Greeks, play in the open air; the drama dies of stalls and boxes and evening dress, and people who come to digest their dinner.”
—Eleonora Duse (1859–1924)
“... in spite of everything, I still believe that people are really good at heart. I simply can’t build up my hopes on a foundation consisting of confusion, misery, and death. I see the world gradually being turned into a wilderness, I hear the ever approaching thunder, which will destroy us too, I can feel the sufferings of millions and yet, if I look up into the heavens, I think that it will all come right, that this cruelty too will end, and that peace and tranquillity will return again.”
—Anne Frank (1929–1945)