Learn dollar-cost averaging: a schedule instead of market timing: test your skills
Invest the same amount on a schedule and let math, not your nerves, decide when you buy. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Explain why a fixed amount buys more when prices fall
- Automate a per-paycheck amount
- Know the lump-sum nuance
- Practice
1. With a fixed amount, when prices fall you buy…
- Practice
2. The biggest DCA mistake is…
- Practice
3. Investing part of each paycheck is…
- Key idea
4. Which statement best explains "The schedule decides, not your nerves"?
- Key idea
5. Which statement best explains "Most people already do it"?
- Key idea
6. Which statement best explains "Pausing breaks it"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
$200 a month buys at $40, then $25, then $50. How many shares in total, and the average cost?
Show the answer
17 shares, about $35.29 each
5 + 8 + 4 = 17 shares for $600. $600 ÷ 17 ≈ $35.29.
Choose one per-paycheck amount and write down where it would go.
More tests in this bootcamp
- See how compound interest builds over time
- Understand index funds, diversification and fees
- What is an ETF? Understand the basket behind a share
- Compare ETFs and mutual funds without the jargon
- Understand the S&P 500 and what it leaves out
- Explore total market funds and check the overlap
- Understand international diversification and currency risk
- Look beyond the story of a sector or thematic fund
- Understand a three-fund portfolio and rebalancing
- Learn dollar-cost averaging: a schedule instead of market timing
- Final exam: Funds and portfolios