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Having heard about IPO underpricing, I put in an order to my broker for 1,170 shares of every IPO he can get for me.

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Having heard about IPO underpricing, I put in an order to my broker for 1,170 shares of every IPO he can get for me. After 3 months, my Investment record is as follows: Shares Allocated IPO A to Me Price per Share Initial Return B C 670 370 1,170 $ 10 8% 22 15 D e 8 11 2 20 a. What is the average underpricing in dollars of this sample of IPOs? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average underpricing $ 10.25 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 1 decimal place.) Average initial return 41.0 %

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