The General Theory of Dollar-Cost Averaging Is

question 19

Multiple Choice

The general theory of dollar-cost averaging is

• A) to buy more shares when prices are low and less when prices are high.
• B) to equal the performance of market averages at the lowest dollar cost.
• C) to sell as markets decline and buy as they begin to rise.
• D) to time the market to take advantage of low share prices.

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Definitions:

Choking

The blockage of the upper airway, which prevents normal breathing and can be a life-threatening emergency.

Finger Foods

Small pieces of food that can be easily picked up and eaten with the fingers, often introduced to toddlers during weaning.

Saturated Fat

A type of dietary fat found in animal products and certain oils that is solid at room temperature and associated with increased cardiovascular risk.

Elevated Total Cholesterol

Higher than normal levels of cholesterol in the blood, increasing the risk of heart disease and stroke.