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If the market is the efficient, a firm issue an earnings announcement which beats all analysts forecasts, then which of the following is least likely
If the market is the efficient, a firm issue an earnings announcement which beats all analysts forecasts, then which of the following is least likely to happen?
The stock price will jump instantaneously as the announcement hit the market
The stock price will not change as the announcement hit the market, since the market already knew this information before this announcement
No investors will earn abnormal return by trading on this information
We won't observe post earning drift.
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