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Company valuation and strategy

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Reference no: EM132562836

Which of the following statements are true? We tend to buy and sell investments based on past returns.

  • We should focus more on past returns than fundamentals (for example, the company's valuation and strategy) when evaluating the attractiveness of a particular stock.
  • We tend to refrain from selling loss-making investments.
  • In order not to be biased when making selling decisions, we should ignore the purchase price of our investments.

Reference no: EM132562836

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