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?
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