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:
“Sir Francis, Sir Francis, Sir Francis is come;”
—Unknown. Upon Sir Francis Drake’s Return from His Voyage about the World, and the Queen’s Meeting Him (l. 1)
“If he should take back his spirit to himself, and gather to himself his breath, all flesh would perish together, and all mortals return to dust.”
—Bible: Hebrew, Job 34:14-15.
“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)