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At 7 a.m., you read in todays Wall Street Journal that Exxon has discovered larger new oil reserves in Montana. If markets are efficient, what

At 7 a.m., you read in todays Wall Street Journal that Exxon has discovered larger new oil reserves in Montana.

  1. If markets are efficient, what would you do to profit from Exxons discovery? (25 marks)
  2. If you believe that many market participants are noise trades who overreact to news, what would you do? (25 marks)

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