Frequently Asked Question
A formula timing plan which consists of periodic purchases of a fixed dollar amount of an investment company regardless of price is known as:
a. Dollar cost averaging
b. Share averaging
c. Constant dollar plan
d. Constant ratio plan
Answer: A
"A" is correct because this is the definition of dollar cost averaging.
b. Share averaging
c. Constant dollar plan
d. Constant ratio plan
Answer: A
"A" is correct because this is the definition of dollar cost averaging.
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