Asked by
shreya chhabra
on Nov 04, 2024
Verified
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.
Maurice Kendall
A British statistician known for his work in the development of non-parametric statistics, including the Kendall rank correlation coefficient.
Stock Price Patterns
Refers to the recurring trends observed in the prices of stocks in the financial markets that investors attempt to identify to make predictions about future price movements.
Predictable Patterns
Observable sequences or trends in data that tend to repeat themselves under similar conditions.
- Investigate the ability to predict stock returns through the analysis of patterns and anomalies.
Verified Answer
JS
Learning Objectives
- Investigate the ability to predict stock returns through the analysis of patterns and anomalies.