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 soul establishes itself.
But how far can it swim out through the eyes
And still return safely to its nest?”
—John Ashbery (b. 1927)
“I borrowed today out of the Advocate’s Library, David Hume’s Treatise of Human Nature, but found it so abstruse, so contrary to sound sense and reason, and so drearying its effects on the mind, if it had any, that I resolved to return it without reading it.
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—James Boswell (1740–1795)
“Love is life. All, everything that I understand, I understand only because I love. Everything is, everything exists, only because I love. Everything is united by it alone. Love is God, and to die means that I, a particle of love, shall return to the general and eternal source.”
—Leo Tolstoy (1828–1910)