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:

Relinquish

To voluntarily give up or surrender a claim, right, or possession.

Security Agreement

A legal document that specifies the collateral for a secured loan, establishing the lender's rights to the secured property.

Rights and Duties

The legal entitlements and obligations that are held by individuals and entities under the law.

Debtor

An individual or entity that owes money to another; the borrower in a financial transaction.