If you bought stock using dollar cost averaging as listed here, what was your average cost? $$\begin{array} { l r l }
\text { June 15 } & \$ 50 & 1.75 \text { shares } \
\text { July 15 } & \$ 50 & 1.65 \text { shares } \
\text { August 15 } & \$ 50 & 2.00 \text { shares }
\end{array}$$

Question

If you bought stock using dollar cost averaging as listed here, what was your average cost? $$\begin{array} { l r l } 
\text { June 15 } & \$ 50 & 1.75 \text { shares } \
\text { July 15 } & \$ 50 & 1.65 \text { shares } \
\text { August 15 } & \$ 50 & 2.00 \text { shares }
\end{array}$$

Quizplus · Accepted Answer

To find the average cost per share using dollar cost averaging, you first calculate the total amount spent and then divide it by the total number of shares purchased. Here, the total amount spent is $150 (since $50 was spent on each of the three occasions). The total number of shares purchased is 1.75 + 1.65 + 2.00 = 5.4 shares. The average cost per share is then $150 / 5.4 = $27.78.

If You Bought Stock Using Dollar Cost Averaging as Listed