If the average cost of a stock is $91.86 as determined by dollar cost averaging,which of the following is true?
A)You would lose money only if you sold your stock at less than $91.86.
B)You would gain money only if you sold your stock at less than $91.86.
C)You would lose money only if you purchased additional stock at greater than $91.86.
D)You would gain money only if you purchased additional stock at greater than $91.86.
E)You would not lose nor gain money regardless of the average cost of the stock.

Question

Quizplus · Accepted Answer

CA) If you sell your stock for more than your average cost of $91.86, you make a profit. Selling for less results in a loss. C) Purchasing additional stock at a price higher than your average cost increases the average cost, potentially leading to a loss if sold below this new average.

If the Average Cost of a Stock Is $91