When Maurice Kendall Examined the Patterns of Stock Returns in 1953

question 38

Multiple Choice

When Maurice Kendall examined the patterns of stock returns in 1953, he concluded that the stock market was __________.Now, these random price movements are believed to be _________.

• A)inefficient; the effect of a well-functioning market
• B)efficient; the effect of an inefficient market
• C)inefficient; the effect of an inefficient market
• D)efficient; the effect of a well-functioning market

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Definitions:

Optimal Time Allocation

The most efficient distribution of one's time across various activities to maximize overall benefit.

Substitution Effect

The change in the quantity of a good consumed as the consumer substitutes other goods that are now relatively cheaper in place of the good that has become relatively more expensive.

Leisure

The time available for purposes other than earning money to buy marketed goods.

Nonmarket Use

Utilization or value derived from a good or service outside of commercial or financial transactions, typically involving public or shared resources.