The General Theory of Dollar Cost Averaging Is

question 21

Multiple Choice

The general theory of dollar cost averaging is

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

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Definitions:

Bulimia Nervosa

A disorder involving cycles of excessive eating followed by efforts to avoid weight gain through purging.

Purging

Engaging in behaviors such as vomiting or using laxatives to expel food from the body, often associated with eating disorders.

Excessive Exercise

Engaging in physical activity to an extreme level that surpasses health benefits, often resulting in physical harm, psychological distress, or interference with usual activities.

Broca's Area

A region in the frontal lobe of the dominant hemisphere (usually the left) of the brain with functions linked to speech production.