In reply to Graham, Johnson and Schnabel (1977), we point out that they have raised a relatively difficult question in scientific method. Provided our earlier work is accepted as operating in the context of the two-period model, we reassert that it revealed no anomalous evidence.
Ball, R., P. Brown and R.R. Officer, 1976, “Asset Pricing in the Australian Industrial Equity Market”, Australian Journal of Management, 1(1),1–32.
2.
Graham, R.E., L.W. Johnson and J. Schnabel, 1977, “Asset Pricing in the Australian Industrial Equity Market: Comment”, Australian Journal of Management, 2, 191–94.
3.
Kuhn, T.S., 1969, The Structure of Scientific Revolutions (University of Chicago Press, Chicago).
4.
Kuhn, T.S., 1974, “Reflections on my Critics”, in: Lakatos, I. and A. Musgrave, eds., Criticism and the Growth of Knowledge (Cambridge University Press, London).
