Dollar cost averaging
A)is a technique to buy stocks,using their betas as guides.
B)is an attempt to buy stocks over time at an average alpha value.
C)attempts to invest an average amount of funds in each portfolio asset.
D)invests an equal amount of funds in an asset at periodic intervals.

Question

Quizplus · Accepted Answer

Dollar cost averaging is a strategy where an equal amount of funds is invested in an asset at periodic intervals, regardless of the asset's price. This technique helps to reduce the impact of market volatility and ensures that investors avoid buying all the shares at one price. It is a way to invest in a disciplined and systematic manner, which can help to achieve long-term investment goals.

Dollar Cost Averaging