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.

Question

Quizplus · Accepted Answer

Maurice Kendall, in his 1953 study, concluded that stock prices moved in a manner that was essentially random, indicating that there were no predictable patterns in stock prices. This finding laid the groundwork for the efficient market hypothesis.

When Maurice Kendall First Examined Stock Price Patterns in 1953