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Without information, David plans to invest $2000 to buy shares of the two upcoming IPOs ($1000 on each company), the Good Co and the Bad

Without information, David plans to invest $2000 to buy shares of the two upcoming IPOs ($1000 on each company), the Good Co and the Bad Co. One of them is undervalued by 20%, and the other is overvalued by 15%. You dont know which is which. Because the institution investors have information, the undervalued one will be ration, and only 60% of your order will be filled. What is your expected profit (with and without the rationing)?

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