Date of Defense

4-6-2005

Department

Finance and Commercial Law

First Advisor

Dr. Robert Balik

Second Advisor

Ronald Prange

Third Advisor

Dr. Ajay Samant

Abstract

DollarCost Averaging (DCA) is a powerful investment strategy, which has worked for many investors, but there is a lot of controversy too. Some Investors believe that this strategy does not work and it is better off investing lump sum. Investing lump sum has greater risk than investing using DCA. This project tries to explain how this strategy works using different stocks and portfolios, which were randomly picked. I picked on six different stocks and portfolios and applied the DCA strategy over three years for a fixed sum of money invested every quarter. I also compared the DCA strategy to Lump Sum Investment Strategy (LS) for the same investments and investment period.

Access Setting

Honors Thesis-Campus Only

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