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:
“I got my first clear view of Ktaadn, on this excursion, from a hill about two miles northwest of Bangor, whither I went for this purpose. After this I was ready to return to Massachusetts.”
—Henry David Thoreau (1817–1862)
“Or ever the silver cord be loosed, or the golden bowl be broken, or
the pitcher be broken at the fountain, or the wheel broken at the
cistern.
Then shall the dust return to the earth as it was: and the spirit
shall return unto God who gave it.
Vanity of vanities, saith the preacher, all is vanity.”
—Bible: Hebrew Ecclesiastes (l. XII, 6–7)
“There are minds so impatient of inferiority that their gratitude is a species of revenge, and they return benefits, not because recompense is a pleasure, but because obligation is a pain.”
—Samuel Johnson (1709–1784)