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Using the calculations from Problem 9, assume that instead of

Using the calculations from Problem 9, assume that instead of investing $200 every quarter, the investor decided

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Using the calculations from Problem 9, assume that instead of investing $200 every quarter, the investor decided to make a lump-sum $800 purchase on the first day of the year. If at year-end the price of the stock closed at $35 per share, which investment strategy, dollar cost averaging or lump-sum investing, produced the greater return?
In problem 9

Transcribed Image Text:

Quarter Price Money Invested Shares Purchased Total Shares Owned Market Value $200 $50 $200 $60 $200 $35 $200 $800 $30 Total

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Personal Finance Turning Money into Wealth

ISBN: 978-0133856439

7th edition

Authors: Arthur J. Keown

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Question Posted: Jan 13, 2016 01:47 AM

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