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:
“Each work of art excludes the world, concentrates attention on itself. For the time it is the only thing worth doing—to do just that; be it a sonnet, a statue, a landscape, an outline head of Caesar, or an oration. Presently we return to the sight of another that globes itself into a whole as did the first, for example, a beautiful garden; and nothing seems worth doing in life but laying out a garden.”
—Ralph Waldo Emerson (1803–1882)
“The soul establishes itself.
But how far can it swim out through the eyes
And still return safely to its nest?”
—John Ashbery (b. 1927)
“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)