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If a Liteco Inc. announces that it expects quarterly earnings to increase by 25 percent...

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If a Liteco Inc. announces that it expects quarterly earnings to increase by 25 percent and it actually sees an increase of 28 percent. i. What should happen to the price of the corporation's stock if the efficient markets hypothesis holds, everything else held constant? ii. What is one flaw of Efficient Market Hypothesis that could influence this reaction? AJ

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