Question

If you bought stock using dollar cost averaging as listed here, what was your average cost?

June 15 $ 50 1.75 shares July 15 $ 50 1.65 shares August 15 $ 50 2.00 shares

Answer 1

The total amount invested in this case would be:

$50 x 1.75 = $87.50 (June 15)

$50 x 1.65 = $82.50 (July 15)

$50 x 2.00 = $100.00 (August 15)

So the total amount invested would be $87.50 + $82.50 + $100.00 = $270.00.

And the total number of shares purchased would be:

1.75 shares + 1.65 shares + 2.00 shares = 5.40 shares

Therefore, the average cost per share would be:

$270.00 / 5.40 shares = $50.00

So the average cost per share using dollar cost averaging would be $50.00.