When Maurice Kendall Examined the Patterns of Stock Returns in 1953

question 64

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
• E) irrational; even more irrational than before

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Definitions:

External Locus of Control

The belief that outcomes in one's life are due to external forces beyond one's control rather than one's own actions.

General Adaptation Syndrome

A three-stage process that describes the physiological changes the body goes through when under stress: alarm, resistance, and exhaustion.

Alarm Reaction

The first stage of the GAS, which is triggered by the impact of a stressor and characterized by sympathetic activity.

Exhaustion Stage

The final phase of the stress response, as described by Hans Selye, characterized by depleted physical and mental resources, leading to burnout or health issues.