1 Company Alpha just announced an increase of 5% in its annual earnings, yet its stock price decreased at the announcement. Which of the following statements is (are) true? 1. This can never happen if market is semi-strong efficient. 2. This is an example of the anomaly called post-earnings-announcement price drift. 3. This shows investors always prefer to buy stocks of companies that generate lower earnings. 4. This can be consistent with market efficiency, because the market may have anticipated even higher earnings prior to the announcement. 5. This is an example of investors underreacting to a public announcement. Your choice: 1/25 Qs Statement 2 Statements 2 and 5 Statement1 Statement 3 Statement 4