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

---

Definitions:

Estimated Overhead Cost

This refers to the projection or forecast of indirect costs associated with manufacturing processes, not directly tied to specific units of production.

Expected Activity

The projected level of activity or volume of work anticipated for a certain period, often used for planning and budgeting purposes.

Activity Rate

A measure used in activity-based costing to assign costs to activities based on their use of resources.