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 long$-$term 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