Dollar-Cost Averaging

This question tests your understanding of a basic investing discipline, dollar-cost averaging, and how it changes the way an investor enters a position over time. In investment banking interviews, concepts like this matter because they show whether you can explain how investors manage timing risk, price volatility, and behavioral bias without relying on market prediction. The key reasoning is to understand why someone would invest on a schedule rather than try to pick the perfect entry point, and how that approach fits with a long-term investment process.