3a. Calculate the performance of Facebook in the three-month post-IPO period. That is, obtain the three-month holding period return an investor would have received if he had invested in Facebook at the closing price on the IPO day and sold the stock three months later at the closing price on August 17, 2012. Annualize the holding period return for comparison purposes.

Holding period return= (19.05-38.23)/38.23= -50.17%

Annualized Return= (1-.5017)^(12/3) -1= -93.83%

3b.Do similar calculation for a roughly three-year holding period (i.e., the 34-month post-IPO period) using the closing price on March 17, 2015. Again, express the performance in terms of annualized return.

Holding period return= (79.37-38.23)/38.23= 107.61%

Annualized Return= (1+1.0761)^(12/34) -1= 29.41%

PLEASE HELP WITH 3C How do these returns compare to those of a typical IPO? You do not need to show a specific percentage return for typical IPOs here but need to discuss the general shortand long-term patterns of typical IPOs returns.