Which of the following statement is NOT a violation of any form of the Efficient Market Hypothesis?

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Which of the following statement is NOT a violation of any form of the Efficient Market Hypothesis?

A company that beats its earnings forecast this quarter is more likely to beat its earnings forecast again next quarter.

A company that generates negative abnormal return today is more likely to generate negative abnormal return tomorrow.

A company that beats its earnings forecast this quarter is more likely to generate positive abnormal return tomorrow.

A company that generates positive abnormal return today is more likely to generate positive abnormal return tomorrow.

Why is it not option 1?

Emh

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Which of the following statement is NOT a violation of any form of the Efficient Market Hypothesis?

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