Question: e) [5 Points] We used two theories to explain why IPO's are underpriced, one relied on asymmetric information and the other on incomplete information.

e) [5 Points] We used two theories to explain why IPO's are underpriced, one relied on asymmetric information and the other on incomplete information. Explain these two theories. Use your explanation to identify which model is better suited to explain the underpricing of Google. (Google was auctioned at 85 and closed the day at 100.34).

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