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 government is not God. It does not have the right to take away that which it can’t return even if it wants to.”
—Anton Pavlovich Chekhov (1860–1904)
“Compassion is frequently a sense of our own misfortunes, in those of other men; it is an ingenious foresight of the disasters that may fall upon us hereafter. We relieve others, that they may return the like when our occasions call for it; and the good offices we do them are, in strict speaking, so many kindnesses done to ourselves beforehand.”
—François, Duc De La Rochefoucauld (1613–1680)