Firm of new product with high net present value

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Reference no: EM131053023

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

a) immediately decline to a new level equivalent to the decreased value of the firm.

b) remain constant.

c) rise gradually over the next few days.

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

e) decline gradually over the next few days.

Reference no: EM131053023

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