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 Choice

II only

IV only

I, III, and IV only

II and III only

I, II, III, and IV only