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Exam CIFC Topic 1 Question 113 Discussion

Actual exam question for IFSE Institute's CIFC exam
Question #: 113
Topic #: 1
Which of the following statements best describes dollar-cost averaging?

Suggested Answer: B Vote an answer

Explanation
Dollar-cost averaging is the practice of systematically investing equal amounts of money at regular intervals, regardless of the price of a security. This strategy can reduce the overall impact of price volatility and lower the average cost per share. By buying regularly in up and down markets, investors buy more shares at lower prices and fewer shares at higher prices. Dollar-cost averaging aims to prevent a poorly timed lump sum investment at a potentially higher price. References: What Is Dollar-Cost Averaging? - Investopedia

by Tab at Dec 08, 2023, 07:27 PM

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