Which one of the following statements is NOT true concerning the total asset growth anomaly?

1) The total asset growth anomaly refers to the empirical finding that firms with high growth rate in total assets tend to experience high future stock returns

2) One possible explanation for the total asset growth anomaly is that there exist limits to arbitrage preventing the mispricing from being arbitraged away

3) Corporate executives who engage in expanding the firm total assets through mergers and acquisitions tend to waste resources and thus cause poor performance in subsequent stock returns

4) To exploit the total asset growth anomaly one may buy call options on stocks with low asset growth in the recent past and buy put options on stocks with high asset growth in the recent past