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A firm, whose stock prices have been fluctuating between RM3.00 and RM3.50 per share in the last four months, suddenly sees its stock price rise
A firm, whose stock prices have been fluctuating between RM3.00 and RM3.50 per share in the last four months, suddenly sees its stock price rise to RM6.00 per share right after the management announces the launch of a new product line that has promising impact on the firms future cash flows. Discuss whether the efficient market hypothesis is violated and if it is the case, what form of market efficiency is contradicted?
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