Question: 1 5 . Underpricing ( S 1 4 . 2 ) Having heard about IPO underpricingI put in an order to my broker for 1
Underpricing S Having heard about IPO underpricingI put in an order to my broker for shares of every IPO he for me After three months, my investment record is as follows: can get IPOShares PriceInitial Allocated per Return to MeShare A B C D a What is the average underpricing in dollars of this sample of IPOs? b What is the average initial return on my portfolio" of shares purchased from the four IPOS that I bid on When calculating this average initial returnremember to weight by the amount of money invested in each issue "You have just encountered the problem of the winnerscurse." True or false
Underpricing S Having heard about IPO underpricing, I put in an order to my broker for shares of every IPO he can get for me After three months, my investment record is as follows;
tableIPOShares,Price,InitialtableAllocatedto Meper,ReturnAShare,B$
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