1. Having heard about IPO Under pricing, I put in an order to my broker for 1,000 shares of every IPO he can get for me. After three months, my investment record is a follows:

IPO	Shares Allocated to me	Price Per share	Initial Return
A	500	$10	7%
B	200	$20	12%
C	1,000	$8	-2%
D	0	$12	23%

1. What is the average underpricing of this sample of IPO?
2. What is the average initial return on my portfolio of shares purchased from the 4 IPOs I bid on? Calculate the average initial return, weighting by the amount of money invested in each issue.
3. Why have I performed so poorly relative to the average initial return on the full sample of IPOs? What lessons do you draw from my experience?