Studies of the performance of professionally managed mutual funds find that these funds:

Group of answer choices

indicate that stock prices consistently adhere to a daily continuation pattern.

all have a tendency to underperform the market consistently year after year.

2.

The pecking order states that firms should:

Group of answer choices

use internal financing first.

issue debt first.

issue new equity first.

always issue debt so the market won't know when managers believe the stock is overvalued.

always issue equity to avoid financial distress costs.

all have a tendency to consistently outperform the overall market.

perform in a manner consistent with semistrong form efficiency.

perform in a manner that definitely refutes both strong and semistrong form efficiency.