Although investing all at once works best when stock prices are rising, dollar-cost averaging can be a good way to take advantageof a fluctuating market. Dollar-cost averaging is an investment strategy designed to reduce volatility in which securities arepurchased in fixed dollar amounts at regular intervals regardless of what direction the market is moving. This strategy is alsocalled the constant dollar plan.You are considering a hypothetical $1,200 investment in a media company's stock. Your choice is to invest the money all at onceor dollar-cost average at the rate of $100 per month for one year. Assume that the company allows you to purchase "fractional"shares of its stock.(a) If you invested all of the money in January and bought the shares for $12 each, how many shares could you buy?shares(b) From the following chart of share prices, calculate the number of shares that would be purchased each month using dollar-cost averaging and the total shares for the year. Round to the nearest tenth.AmountCost perSharesAmountCost perSharesMonthMonthInvestedSharePurchasedInvestedSharePurchasedJanuary$100$12.00July$100$13.40February10011.65August10012.60March10010.70September10011.90April1009.75October10012.50May10011.25November10011.35June10012.15December10012.15total shares =(c) What is the average price you pay per share if you purchase them all in January?(d) What is the average price you pay per share if you purchase them using dollar-cost averaging? (Round your answer to thenearest cent.)

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Although investing all at once works best when stock prices are rising, dollar-cost averaging can be a good way to take advantage of a fluctuating market. Dollar-cost averaging is an investment strategy designed to reduce volatility in which securities are purchased in fixed dollar amounts at regular intervals regardless of what direction the market is moving. This strategy is also called the constant dollar plan. sideri ng a b uneth etisal 1 2 00 inuestmo nt in Your a heice io

Although investing all at once works best when stock prices are rising, dollar-cost averaging can be a good way to take advantage of a fluctuating market. Dollar-cost averaging is an investment strategy designed to reduce volatility in which securities are purchased in fixed dollar amounts at regular intervals regardless of what direction the market is moving. This strategy is also called the constant dollar plan. sideri ng a b uneth etisal 1 2 00 inuestmo nt in Your a heice io

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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Concept explainers

Unitary Method

The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.

Speed, Time, and Distance

Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.

Profit and Loss

The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.

Units and Measurements

Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.

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Question

Although investing all at once works best when stock prices are rising, dollar-cost averaging can be a good way to take advantage
of a fluctuating market. Dollar-cost averaging is an investment strategy designed to reduce volatility in which securities are
purchased in fixed dollar amounts at regular intervals regardless of what direction the market is moving. This strategy is also
called the constant dollar plan.
You are considering a hypothetical $1,200 investment in a media company's stock. Your choice is to invest the money all at once
or dollar-cost average at the rate of $100 per month for one year. Assume that the company allows you to purchase "fractional"
shares of its stock.
(a) If you invested all of the money in January and bought the shares for $12 each, how many shares could you buy?
shares
(b) From the following chart of share prices, calculate the number of shares that would be purchased each month using dollar-
cost averaging and the total shares for the year. Round to the nearest tenth.
Amount
Cost per
Shares
Amount
Cost per
Shares
Month
Month
Invested
Share
Purchased
Invested
Share
Purchased
January
$100
$12.00
July
$100
$13.40
February
100
11.65
August
100
12.60
March
100
10.70
September
100
11.90
April
100
9.75
October
100
12.50
May
100
11.25
November
100
11.35
June
100
12.15
December
100
12.15
total shares =
(c) What is the average price you pay per share if you purchase them all in January?
(d) What is the average price you pay per share if you purchase them using dollar-cost averaging? (Round your answer to the
nearest cent.)

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Although investing all at once works best when stock prices are rising, dollar-cost averaging can be a good way to take advantage of a fluctuating market. Dollar-cost averaging is an investment strategy designed to reduce volatility in which securities are purchased in fixed dollar amounts at regular intervals regardless of what direction the market is moving. This strategy is also called the constant dollar plan. You are considering a hypothetical $1,200 investment in a media company's stock. Your choice is to invest the money all at once or dollar-cost average at the rate of $100 per month for one year. Assume that the company allows you to purchase "fractional" shares of its stock. (a) If you invested all of the money in January and bought the shares for $12 each, how many shares could you buy? shares (b) From the following chart of share prices, calculate the number of shares that would be purchased each month using dollar-cost averaging and the total shares for the year.…
Although investing all at once works best when stock prices are rising, dollar-cost averaging can be a good way to take advantage of a fluctuating market. Dollar-cost averaging is an investment strategy designed to reduce volatility in which securities are purchased in fixed dollar amounts at regular intervals regardless of what direction the market is moving. This strategy is also called the constant dollar plan. You are considering a hypothetical $1,200 investment in a media company's stock. Your choice is to invest the money all at once or dollar-cost average at the rate of $100 per month for one year. Assume that the company allows you to purchase "fractional" shares of its stock. (a) If you invested all of the money in January and bought the shares for $12 each, how many shares could you buy? shares (b) From the following chart of share prices, calculate the number of shares that would be purchased each month using dollar-cost averaging and the total shares for the year. Round to…
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