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Dollar Cost Averaging With dollar cost averaging, you invest the same amount each month. By doing so, investors hope to protect themselves from the ups
Dollar Cost Averaging With dollar cost averaging, you invest the same amount each month. By doing so, investors hope to protect themselves from the ups and downs of market prices. This strategy is not necessarily a guarantee. < Compare the results for these two investors and answer the questions. Khalid Beth Amount Month Amount Price per Shares Price per Shares invested share purchased invested share purchased January $100 $4.00 25.0 $100 $4.00 25.0 February $100 3.50 28.6 $100 3.50 28.6 March $100 3.75 26.7 $100 3.50 28.6 April $100 3.75 26.7 $100 3.75 26.7 May $100 4.00 25.0 $100 3.75 26.7 Total $500 132.0 $500 135.6 11. How much did Khalid invest over the five months? How much did Beth invest? 12. Based on the price per share for the last month in the chart, how much was each investment worth? 13. Whose investment did better? Why
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