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Which of the following have been offered as explanations of IPO underpricing? I. Underpricing helps offset the winner's curse. II . Underpricing helps ensure investors
Which of the following have been offered as explanations of IPO underpricing? I. Underpricing helps offset the "winner's curse." II Underpricing helps ensure investors will be longterm holders of the IPO securities III. Underpricing helps ensure investment bank customers will earn a profit on average. IV Underpricing is needed to convince investors to accept the risks associated with IPOs. Multiple Cholce II only IV only II and III only 
Which of the following have been offered as explanations of IPO underpricing?
I. Underpricing helps offset the "winner's curse."
II Underpricing helps ensure investors will be longterm holders of the IPO securities
III. Underpricing helps ensure investment bank customers will earn a profit on average.
IV Underpricing is needed to convince investors to accept the risks associated with IPOs.
Multiple Cholce
II only
IV only
II and III only
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Principles of Managerial Finance
Authors: Chad J. Zutter, Scott B. Smart
15th edition
978-0134476315
