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First off, if you get the lump sum all at once, you don't get the benefits of dollar cost averaging. This basically means that if you happen to invest it at a time right before a big downswing, you can end up getting in big trouble. Dollar cost averaging works in your favor.
wiki
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DCA vs. Lump Sum
[/ QUOTE ]by worked in your favor, I meant in terms of variance, not EV. I assume most people aren't completely blind to variance. Although OP might be.
Also...
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Our study looks at the problem from a different perspective.
Given a lump sum, is it better to invest the entire amount immediately, or spread it out in equal installments?
[/ QUOTE ]He doesn't have a lump sum. He's taking out a loan to get a lump sum. It's clear he shouldn't take out the loan then use it for DCA.