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Pat suspects that the advisor did not study X Ltd.'s annual report carefully enough, decides to investigate herself. She turns to theoretical and empirical studies

Pat suspects that the advisor did not study X Ltd.'s annual report carefully enough, decides to investigate herself. She turns to theoretical and empirical studies of rational, risk-adverse investors and an efficient securities market, and to market response to financial statement information, to help understand why the market seems to have responded positively following X Ltd.'s annual report, even though the financial statements showed bad news. Suggest, and briefly explain, possible reasons for the positive market response

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