Q: 2
Xian-Li believes she is a sophisticated investor. She has constructed her own portfolio and has had
some success. She does not believe in studying a company’s details such as earnings, expenses, or
assets. She is more concerned with patterns in a company’s stock price over time. She believes
patterns form and can be used to predict future movements in the market.
How does Xian-Li evaluate the companies in her portfolio?
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