When Maurice Kendall First Examined Stock Price Patterns in 1953

question 41

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.
• E) the direction of change in stock prices was unpredictable, but the amount of change followed a distinct pattern.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets relative to its current liabilities.

Numerator

The top number in a fraction or ratio that represents the part of the whole being considered.

Denominator

In mathematics, the denominator is the bottom part of a fraction that indicates how many equal parts the whole is divided into.

Working Capital Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with its current assets.