Q5 Q4

b. Does your answer to (a) imply that the market for KCP stock was inefficient in 2006 ? The present value of the cash flows is $. (Round to the nearest cent.) b. Does your answer to (a) imply that the market for KCP stock was inefficient in 2006 ? (Select all the choices that apply.) A. Probably not. In 2006 , investor expectations were likely very different-KCP might have continued to grow. B. Ex-post, the stock is likely to do better or worse than investors' expectations. C. The market would be inefficient only if the stock was underpriced relative to what would have been reasonable expectations in 2006 . D. The market would be inefficient if the stock price was overpriced or underpriced relative to what would have been reasonable expectations in 2006