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Researchers have documented the phenomenon of post earnings announcement drift, i.e., stock returns continue to be positive over the long run after strong positive earnings,

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Researchers have documented the phenomenon of post earnings announcement drift, i.e., stock returns continue to be positive over the long run after strong positive earnings, and negative after strong negative earnings. This evidence is consistent with: Multiple Choice Efficient markets O Market inefficiency caused by investor over-reaction Efficient markets O Market inefficiency caused by investor over-reaction O Has no bearing on the market efficiency debate Market inefficiency caused by investor under- reaction

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