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:
“... in spite of everything, I still believe that people are really good at heart. I simply can’t build up my hopes on a foundation consisting of confusion, misery, and death. I see the world gradually being turned into a wilderness, I hear the ever approaching thunder, which will destroy us too, I can feel the sufferings of millions and yet, if I look up into the heavens, I think that it will all come right, that this cruelty too will end, and that peace and tranquillity will return again.”
—Anne Frank (1929–1945)
“The mother as a social servant instead of a home servant will not lack in true mother duty.... From her work, loved and honored though it is, she will return to her home life, the child life, with an eager, ceaseless pleasure, cleansed of all the fret and fraction and weariness that so mar it now.”
—Charlotte Perkins Gilman (1860–1935)
“I thought to myself that it was still another Sunday gone by, that Mother was now buried, that I was going to return to work and that, after all, nothing had changed.”
—Albert Camus (1913–1960)