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:
“Then came the Lord Chamberlain with his white staff,
And all the people began to laugh;
And then the Queen began to speak,
‘You’re welcome home, Sir Francis Drake.’”
—Unknown. Upon Sir Francis Drake’s Return from His Voyage about the World, and the Queen’s Meeting Him (l. 5–8)
“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)
“It is the secret of the world that all things subsist and do not die, but only retire from sight and afterwards return again.”
—Ralph Waldo Emerson (1803–1882)