Assume that markets are semi-strong form efficient. Suppose, then, that during a trading day, important new information is released for the first time concerning a certain pharmaceutical company. This information indicates that one of the firms new drugs, previously thought to be very promising, was just rejected by regulators due to the drug's serious side effects. How would you expect the share price of the firm to react to this information?

Group of answer choices

The share price of the firm will fall over an extended period of time as investors begin to sell shares in the company.

The share price of the firm will fall below what is considered appropriate because of the decreased demand for the shares, but eventually the price will rise to the correct level.

None of these alternatives

The share price of the firm will drop immediately to a price that reflects the value of the new information.

The share price of the firm will not change, since this type of information has no impact in markets that are semi-strong form efficient.