When Maurice Kendall Examined the Patterns of Stock Returns in 1953

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