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Having heard about IPO underpricing, I put in an order to my broker for 1,010 shares of every IPO he can get for me. After

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Having heard about IPO underpricing, I put in an order to my broker for 1,010 shares of every IPO he can get for me. After 3 months, my investment record is as follows: IPO A B C D Shares Price Allocated per Initial to Me Share Return 510 $11 6% 210 20 11 1,010 9 - 2 0 12 24 a. What is the average underpricing in dollars of this sample of IPOs? (Do not round Intermediate calculations. Roun your answer to 2 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 1 decimal place.) Average initial return % c. "You have just encountered the problem of the winners' curse." True False

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