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:
“To save the theatre, the theatre must be destroyed, the actors and actresses must all die of the plague. They poison the air, they make art impossible. It is not drama that they play, but pieces for the theatre. We should return to the Greeks, play in the open air: the drama dies of stalls and boxes and evening dress, and people who come to digest their dinner.”
—Eleonora Duse (1858–1924)
“We perceive that the schemers return again and again to common sense and labor. Such is the evidence of history.”
—Henry David Thoreau (1817–1862)
“At twelve, the disintegration of afternoon
Began, the return to phantomerei, if not
To phantoms. Till then, it had been the other way:
One imagined the violet trees but the trees stood green,
At twelve, as green as ever they would be.
The sky was blue beyond the vaultiest phrase.”
—Wallace Stevens (1879–1955)