QUESTION 14 6 points Save Answer Jasmine has an arrangement with her broker to receive 1,500 shares of all available IPOst The average [PO offer price is 820, When the IPO is very successful], which is 15% of the time, the average closing price at the end of the first day of trading is $30. When the [PO is successful, which is 75% of the time, the average closing price at the end of the rst day of trading is $22 and when the IPO is unsuccessful, which is 10% of the time, the average closing price at the end ofthe rst day oftrading is $16. a. Calculate the underpiicing when the E0 is very successful, successful and unsuccessful. What is the average [P0 underpricing? (2 marks) b. Suppose the shares are rationed 25 to 1 when very successful, 15 to 1 when successful and 1 to 1 when unsuccessful. What is Jasmine's expected one-day dollar return on her investments? (3 marks) 0. Given the return in (b) above, what is your view on whether Jasmine will continue to invest in future IPOs and why? (1 mark) For the toolbar, press ALT+F10 (PC) or ALT+FN+F1O (Mac). B I Q '5' Paragraph V Opensansss V 10p! V EV E V AV V L 3' Ir] E Q (7 ('>