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:
“And the Stranger will depart and return to the desert.
O my soul, be prepared for the coming of the Stranger,
Be prepared for him who knows how to ask questions.”
—T.S. (Thomas Stearns)
“When we suffer anguish we return to early childhood because that is the period in which we first learnt to suffer the experience of total loss. It was more than that. It was the period in which we suffered more total losses than in all the rest of our life put together.”
—John Berger (b. 1926)
“The emancipation of today displays itself mainly in cigarettes and shorts. There is even a reaction from the ideal of an intellectual and emancipated womanhood, for which the pioneers toiled and suffered, to be seen in painted lips and nails, and the return of trailing skirts and other absurdities of dress which betoken the slave-woman’s intelligent companionship.”
—Sylvia Pankhurst (1882–1960)