if an investor can earn 20% on underpriced IPOs, but will loose 10% on overprices IPOs in

Fantastic news! We've Found the answer you've been seeking!

Question:

if an investor can earn 20% on underpriced IPOs, but will loose 10% on overprices IPOs in which he was awarded $2000 worth of the overprices issue, how much of the underpriced issue must he be awarded to gain $500

a. $1,500

b. $2,500

c. $3,500

d. $10,000

e. none of the above

Related Book For answer-question

Investments An Introduction

ISBN: 978-0324561388

9th Edition

Authors: Herbert B Mayo

See More Books

Posted Date: Aug 01, 2022 07:40 AM

See More Questions

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
Design a suitable angle section to carry a factored tensile force 210 kN assuming a single row of M20 bolts. The yield strength and ultimate strength of the material is 250 MPa and 410 MPa,...
From the following list of accounts (1) Identify the assets or liabilities that commonly require an adjustment at the end of the accounting period, and (2) Indicate whether the adjustment relates to...
A 0.5-kg block B slides without friction inside a slot cut in arm OA which rotates in a vertical plane. The motion of the rod is defined by the relation = 10 rad/s2 , constant. At the instant when ...
The curved rod has a radius r and is fixed to the wall at B. Determine the resultant internal loadings acting on the cross section at point A which is located at an angle from the horizontal. B P
Use the following industry average ratios to construct a pro forma balance sheet for Carlos Menza,Inc. Total asset turnover Average collection period (assume a 365-day year) Fixed asset turnover...
Question One You must answer all parts of this question Jane runs a meeting group for parents with babies and toddlers, the "Group for Babies and Toddlers" (GBT) in the town of Glead, Ireland. She...
Adam, Barbara and Charlotte formed the equal ABC partnership; Adam and Barbara each contributed cash of $100,000 and Charlotte contributed land worth $130,000 with a basis of $120,000 and subject to...
Brianna budgeted that she would use 3,100 labour hours in her department at an hourly rate of $10 per hour. However, the accounting records show 2,800 hours at $11 per hour. What is the labour cost...
Many Students earn "tips" as part of their income in their early working years. What statement best reflects the reporting of tips?
Recently, suppliers have raised costs so Urban Kicks spends more to make each pair of shoes. Despite these changes, management has managed to keep fixed costs and the selling price the same. What do...
When presented with a non-linear combination of two variables (Variable A and Variable B) that lead to a single outcome (Outcome C): When presented with a non-linear combination of two variables...
Explain the competitive factors of the companies: product strategy, base of resources and experience, and capacity of the competitors.
Great LEarning FRA project A balance sheet is a financial statement of a company that provides a snapshot of what a company owns, owes, and the amount invested by the shareholders. Thus, it is an...
In April 2023, Bud Light faced a boycott from American conservatives who were offended by its sponsorship of a transgender TikTok star, Dylan Mulvaney, as part of its marketing campaign to attract...
A copper wire (density = 8.96 g/cm 3 ) has a diameter of 0.25 mm. If a sample of this copper wire has a mass of 22 g, how long is the wire?
You purchase a REIT for $50. It distributes $3 consisting of $1 in income, $0.50 in long-term capital gains, $0.30 in short-term capital gains, and $1.20 in return of capital. After a year, you sell...
Two bonds have the following features: The structure of yields is Term Interest Rate 1 year .....6% 2 years .....7% 3 years .....8% 4 years .....9% 5 years .....10% a) What is the valuation of each...
The annual risk-free rate of return is 9 percent and the investor believes that the market will rise annually at 15 percent. If a stock has a beta coefficient of 1.5 and its current dividend is $1,...
Is the word anxiety a candidate for creating a stable pattern? If so, give reasons.
Define the real meaning of anxiety. What are the different meanings of this word?
Can you list six important benefits of this pattern?

if an investor can earn 20% on underpriced IPOs, but will loose 10% on overprices IPOs in

Question:

Expert Answer:

Here weve Required Gain 500 Earnings on Underpriced IPO 20 Value of Overpriced IPO 2000 ... View the full answer

Investments An Introduction

Students also viewed these finance questions