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:
“Yet I shall never return to the past, that attic.”
—John Ashbery (b. 1927)
“Adolescence is a time when children are supposed to move away from parents who are holding firm and protective behind them. When the parents disconnect, the children have no base to move away from or return to. They aren’t ready to face the world alone. With divorce, adolescents feel abandoned, and they are outraged at that abandonment. They are angry at both parents for letting them down. Often they feel that their parents broke the rules and so now they can too.”
—Mary Pipher (20th century)
“I hate that word. It’s return—a return to the millions of people who’ve never forgiven me for deserting the screen.”
—Billy Wilder (b. 1906)