Question
For DCA: Assume investing P for each of all the T periods, then total cost (initial capital, Ci) = PT. Assume S(t), t=1,...T, is the
For DCA: Assume investing P for each of all the T periods, then total cost (initial capital, Ci) = PT. Assume S(t), t=1,...T, is the stock price at period t. Then # shares purchased nS = P/S(1)+P/S(2)+...+P/S(T) Final capital Cf= nS*S(T) Please find under what condition, Cf>Ci, i.e., nS*S(T) - PT>0?
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Business A Changing World
Authors: O. C. Ferrell, Geoffrey Hirt, Linda Ferrell
10th edition
1259179397, 978-1259179396
