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.
“The human heart dares not stay away too long from that which hurt it most. There is a return journey to anguish that few of us are released from making.”
—Lillian Smith (1897–1966)
“I never saw so sweet a face
As that I stood before:
My heart has left its dwelling-place
And can return no more.”
—John Clare (1793–1864)