With dollar-cost averaging a manager purchases fewer shares when stock prices are low and more shares when stock prices are high.

Name: With dollar-cost averaging a manager purchases fewer shares when stock prices are low and more shares when stock prices are high.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

With dollar-cost averaging, a manager purchases a fixed amount of shares or securities at regular intervals, regardless of the stock prices. Therefore, the number of shares purchased remains the same regardless of the stock prices.

With Dollar-Cost Averaging a Manager Purchases Fewer Shares When Stock