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whats the answer to all 6 questions, based on the table? One of the theories regarding initial public offering (IPO) pricing is that the initial
whats the answer to all 6 questions, based on the table?
One of the theories regarding initial public offering (IPO) pricing is that the initial returny (the percentage change from offer to open price) on an IPO depends on the price revision (the percentage change from pre offer to offer price). Another factor that may influence the initial return is a high-tech dummy variable that equals 1 for high-tech firms and otherwise. The following table shows a portion of the data on 264 IPO firms from January 2001 through September 2004, Initial Return 39.88 21.84 Price Revision 10.19 -26.42 High-Tech 5.17 -24.54 0-1. Estimate y .000 x 67de where the dummy variable dequals 1 for firms that are high-tech (Round your answers to 2 decimal places) Initial Rotum Price Revision High-Toch *-2. Use the estimated model to predict the initial return of a high-tech firm with a 10% price revision (Round coefficient estimates to at least a decimal places and final answer to 2 decimal places.) Predicted retom of a high tech tom 3. Find the corresponding predicted return of a firm that is not high-tech (Round coefficient estimates to at least a decimal places and final answer to 2 decimal places.) Preturn on high-tech firm b.1. Estimate y = Bo 01x + 0d + e where the dummy variable d equals 1 for firms that are not high-tech (Negative values should be indicated by a minus sign. Round your answers to 2 decimal place.) Initial Return Price Revision High-Tech 6.2. Use the estimated model to predict the initial return of a high tech firm with a 10% price revision (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.) Predicted the likel teturn of a high-tech firm 6.3. Find the corresponding predicted return of a firm that is not high-tech (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.) Predicted return of Nigh-tech firm Step by Step Solution
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