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Having heard about IPO underpricing, I put in an order to my broker for 1 , 1 6 0 shares of every IPO he can
Having heard about IPO underpricing, I put in an order to my broker for shares of every IPO he can get for me After months, my
investment record is as follows:
a What is the average underpricing in dollars of this sample of IPOs? Do not round intermediate calculations. Round your answer to
decimal places.
Average underpricing
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 return, remember to weight by the amount of money invested in each issue. Do not round intermediate calculations.
Enter your answer as a percent rounded to decimal place.
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