3 ms·
DCA reduces variance in your returns for a slightly lower rate of return. It's a risk reducer with a clear derivation. You exchange expected performance for red
by tlarkworthy 4y ago
DCA reduces variance in your returns for a slightly lower rate of return. It's a risk reducer with a clear derivation. You exchange expected performance for reduced variance in outcome. That's useful, you can plan better with reduced variance.
https://www.financialplanningassociation.org/article/journal/OCT15-dollar-cost-averaging-trade-between-risk-and-return https://www.financialplanningassociation.org/article/journal...