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If the market is fully efficient, an announcement by a firm of a new product with a large positive net present value will cause the

If the market is fully efficient, an announcement by a firm of a new product with a large positive net present value will cause the market price of that firm's stock to

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decline gradually over the next few days.

immediately increase to a new level equivalent to the increased value of the firm.

rise gradually over the next few days.

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