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:
“The return to solid values is always hard.... Distress, panic, and hard times have marked our pathway in returning to solid values.”
—James A. Garfield (1831–1881)
“I can neither return your love nor dismiss it.”
—Mason Cooley (b. 1927)
“The soul establishes itself.
But how far can it swim out through the eyes
And still return safely to its nest?”
—John Ashbery (b. 1927)