This Question: 1 pt 11 of 51 (0 complete) ▼ This Tes: 51 pts possible Dollar-cost averaging has which of the following advantages over lump-sum investing? OA. Increased dividends O B. Increased diversification ° C. Reduces market timing risk OD. Lower transaction costs
Expert Answer
C. Reduces market timing risk
Dollar cost leveraging is the practice of investing small amount of sums at regular interval of time, whereas lump investing is investing the total sum all at once. Therefore, by dollar-cost leveraging, the investor gets entry at multiple price points, and an average price over a period of time is
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