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The following graph shows the behaviour of average cumulative abnormal return for a sample of companies that announced negative earnings forecasts. It presents daily cumulative abnormal return for 21 days, from day -10 to day + 10 where day 0 is the earnings forecast announcement day.

Explain whether the behaviour of cumulative abnormal return in this graph is consistent with the efficient market hypothesis. If not, explain what behavioural bias/critique is reflected in the above graph.

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