Which of the Following Is True for Dollar Cost Averaging

question 111

Multiple Choice

Which of the following is true for dollar cost averaging?

• A) It allows us to purchase an equal dollar amount of a different stock at equal time intervals.
• B) It allows us to purchase an unequal dollar amount of the same stock at equal time intervals.
• C) It allows us to purchase an equal dollar amount of the same stock at equal time intervals.
• D) It allows us to purchase an unequal dollar amount of a different stock at equal time intervals.

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Definitions:

Forward Integration

A business strategy where a company controls the distribution or the supply chain for its products.

Acquires Distributors

The process by which a company takes ownership of distribution channels or companies to enhance its supply chain effectiveness and market reach.

Stability Strategy

A business approach aimed at maintaining the current status quo in terms of growth rate, revenues, and operational scale, often used in predictable environments.

Maintain Current Operations

The ongoing efforts to keep a business's regular activities running smoothly and efficiently.