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Ede4ka [16]
3 years ago
13

Nicholas Manufacturing just announced yesterday that its fourth quarter earnings will be 10% higher than last year's fourth quar

ter. Nicholas had an abnormal return of 1.2% yesterday. This suggests that A. the market is not efficient. B. Nicholas' stock will probably rise in value tomorrow. C. investors expected the earnings increase to be larger than what was actually announced. D. investors expected the earnings increase to be smaller than what was actually announced. E. earnings are expected to decrease next quarter.
Business
1 answer:
irina [24]3 years ago
8 0

Answer:

C

Explanation:

Investors expected the earnings increase to be larger than what was actually announced.

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