Dollar cost averaging is likely to work best with a mutual fund
A) whose NAV fluctuates widely, but trends upward.
B) whose NAV remains relatively constant, like a money market fund.
C) whose NAV fluctuates widely, but trends downward.
D) whose NAV fluctuates within a narrow range and is relatively trendless.

Question

Quizplus · Accepted Answer

Dollar cost averaging works best with investments that fluctuate widely but trend upward over time, allowing investors to buy more shares when prices are low and fewer when prices are high, potentially reducing the average cost per share over time.

Dollar Cost Averaging Is Likely to Work Best with a Mutual