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:
“I am apt to think, if we knew what it was to be an angel for one hour, we should return to this world, though it were to sit on the brightest throne in it, with vastly more loathing and reluctance than we would now descend into a loathsome dungeon or sepulchre.”
—George Berkeley (1685–1753)
“I have often wondered how they manage to get return envelopes which miss, by one-quarter of an inch, fitting the blank you are supposed to return. They say, “Please fill out and return the enclosed envelope,” and the enclosed envelope is always one-quarter of an inch too small.”
—Robert Benchley (1889–1945)
“I believe in the brotherhood of man, all men, but I don’t believe in brotherhood with anybody who doesn’t want brotherhood with me. I believe in treating people right, but I’m not going to waste my time trying to treat somebody right who doesn’t know how to return the treatment.”
—Malcolm X (1925–1965)