In the context of the bsv model explain intuitively, Finance Basics

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In the context of the bsv model explain intuitively

Question: In the context of the BSV model, explain intuitively (nontechnically) why two consecutive earnings changes in the same direction make investors less likely to think that they are in regime 1 (mean-reversion) versus the case of two earnings changes in alternate directions.

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Finance Basics: In the context of the bsv model explain intuitively

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Finance Basics: In the context of the bsv model explain intuitively

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