Nicholas Manufacturing just announced yesterday that its fourth quarter earnings will be 10% higher than last year's fourth quarter. Nicholas had an abnormal return of -1.2% yesterday. This suggests that reen 01... Multiple Choice 33 reen 01...14 investors expected the earnings increase to be larger than what was actually announced. investors expected the earnings increase to be smaller than what was actually announced. the market is not efficient. Nicholas' stock will probably rise in value tomorrow. earnings are expected to decrease next quarter.