Through the regular purchases of stock dollar cost averaging, a newer investor or one with little money initially can amass a sizeable portfolio over time. Constant dollar averaging is an investment strategy whereby the investor adds or subtracts the amount of cash necessary from his stock portfolio to keep the original number of stock purchased from fluctuating.
17) is strongly supported for the OECD countries, but receives little or no support for the non-OECD countries.
The most popular models for forecasting volatility are the GARCH (generalized autoregressive conditional heteroscedasticity) family. Dozens of variations of GARCH models have been proposed for forecasting volatility based on the assumption that returns are generated by a random process with time-varying and mean- reverting volatility (Alexander, 2001, p.