When Maurice Kendall First Examined Stock Price Patterns in 1953

question 29

Multiple Choice

When Maurice Kendall first examined stock price patterns in 1953, he found that

• A)certain patterns tended to repeat within the business cycle.
• B)there were no predictable patterns in stock prices.
• C)stocks whose prices had increased consistently for one week tended to have a net decrease the following week.
• D)stocks whose prices had increased consistently for one week tended to have a net increase the following week.

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Definitions:

Probability

The measure of the likelihood that an event will occur, quantified between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Expected Value

The expected value is a statistical concept that calculates the mean of all possible values of a random variable, weighted by their respective probabilities.

Stock Price

Stock price is the value of a company's shares traded on the stock market, representing investor's valuation of the company's future earnings potential.

Probability

An indicator of how probable an event is, represented as a numerical value ranging from 0 to 1.