Question

Which of the following is not a takeaway from the Charles Schwab 20 year market timing study in relation to using dollar cost averaging as an investment strategy?

Group of answer choices

A) Prevents procrastination
B) Minimizes regret
C) Avoids market timing
D) Produces the highest returns

Answer 1

The Charles Schwab 20 year market timing study found that dollar cost averaging avoids market timing as an investment strategy.

Step-by-step explanation:

The Charles Schwab 20 year market timing study found that dollar cost averaging as an investment strategy:

A) Prevents procrastination

B) Minimizes regret

C) Avoids market timing

D) Produces the highest returns

Based on the provided options, the correct answer is C) Avoids market timing. Dollar cost averaging focuses on investing a fixed amount of money at regular intervals, regardless of market conditions. This strategy allows investors to avoid trying to time the market, which is notoriously difficult and often leads to suboptimal returns.