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KWM Corporation just announced yesterday that it would undertake an international joint venture. You observe that KWM had an abnormal return of 3% yesterday. This

KWM Corporation just announced yesterday that it would undertake an international joint venture. You observe that KWM had an abnormal return of 3% yesterday. This suggests that

investors view the international joint venture as bad news.

the market is not efficient.

KWM stock will probably rise in value again tomorrow.

investors view the international joint venture as good news.

earnings are expected to decrease next quarter.

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