Potential problems associated with cost averaging can be reduced by averaging the cost over a shorter span of time.

Name: Potential problems associated with cost averaging can be reduced by averaging the cost over a shorter span of time.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cost averaging involves investing a fixed amount of money at regular intervals, and reducing the time span might increase transaction costs and market timing risk, potentially exacerbating problems rather than reducing them.

Potential Problems Associated with Cost Averaging Can Be Reduced by Averaging