There are historically three 32-month periods of generally rising prices in the stock market for every one 9-month period of falling prices. This observation leads you to conclude that the stock market exhibits a:
A) random pattern.
B) trend pattern.
C) seasonal pattern.
D) cyclical pattern.

Question

Quizplus · Accepted Answer

The fact that there are three 32-month periods of rising prices for every one 9-month period of falling prices suggests that the stock market exhibits a cyclical pattern. This means that the market tends to go through repeated cycles of growth and decline, rather than following a random or seasonal pattern or a steady trend.

There Are Historically Three 32-Month Periods of Generally Rising Prices