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What nicholas manufacturing suggests that

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Question 1: Nicholas Manufacturing just announced yesterday that its fourth quarter earnings will be 10% higher than last year's fourth quarter. Nicholas had an abnormal return of 1.2% yesterday. This suggests that ______

A. Earnings are expected to decrease next quarter

B. Nicholas stock will probably rise in value tomorrow

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

D. the market is not efficient

E. investors expected the earnings increase to be smaller than what was actually announced.

What if it's -1.2%. Would the answer be the same?

Reference no: EM132570869

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