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Does anyone have a reference to a detailed mathematical analysis of the process of dollar cost averaging and whether it is really beneficial?

This question isn't detailed enough.

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DJClayworth
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1 Answers1

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It is beneficial when compared to buying a fixed number of shares. Here's an introductory analysis. In summary, cost averaging yields the harmonic mean of the entry prices. The resulting cost basis is biased towards the lower outliers. The beneficial effects are more noticeable as volatility increases.

JoeTaxpayer
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James
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