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:
“This spending of the best part of one’s life earning money in order to enjoy a questionable liberty during the least valuable part of it reminds me of the Englishman who went to India to make a fortune first, in order that he might return to England and live the life of a poet. He should have gone up garret at once.”
—Henry David Thoreau (1817–1862)
“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)
“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)