What Is the Difference Between Dollar Cost Averaging and Continuous

question 38

Multiple Choice

What is the difference between dollar cost averaging and continuous automatic investing?

• A)Continuous automatic investing doesn't have any stated lump sum or end date.
• B)Dollar cost averaging is when you have a large amount of money to invest,and you invest specific portions of the lump sum at specific times until the entire sum is invested.
• C)Both options are correct.
• D)Neither option is correct.

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Definitions:

Sensation-Seeking

A trait describing the tendency to seek out novel, varied, complex, and intense sensations and experiences, and the willingness to take physical, social, legal, and financial risks for such experiences.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, and praise.

Conscious Awareness

The mental state of being fully present and aware of one's thoughts, feelings, and surroundings.

Motivation

The driving force behind all actions of an organism, stemming from needs, desires, and goals.