B3. You requested your broker 1050 shares of all available IPOS. Suppose that on the first day, in 1/10 IPOS stock appreciates 72% (very successful); in 8/10 IPOS stock appreciates 12% (successful); in 1/10 IPOS stock depreciates -15% (unsuccessful). a. Average IPO underpricing (first-day appreciation)?
B3. You requested your broker 1050 shares of all available IPOS. Suppose that on the first day, in 1/10 IPOS stock appreciates 72% (very successful); in 8/10 IPOS stock appreciates 12% (successful); in 1/10 IPOS stock depreciates -15% (unsuccessful). a. Average IPO underpricing (first-day appreciation)?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![B3. You requested your broker 1050 shares of all available IPOS. Suppose that on the first
day, in 1/10 IPOS stock appreciates 72% (very successful); in 8/10 IPOS stock appreciates
12% (successful); in 1/10 IPOS stock depreciates -15% (unsuccessful).
a. Average IPO underpricing (first-day appreciation)?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F704a1b48-efb6-48ab-b8c9-dc90da297feb%2F1e51ee40-56a8-4b99-8ec9-9f22a8700d60%2Fm1ojrfc_processed.png&w=3840&q=75)
Transcribed Image Text:B3. You requested your broker 1050 shares of all available IPOS. Suppose that on the first
day, in 1/10 IPOS stock appreciates 72% (very successful); in 8/10 IPOS stock appreciates
12% (successful); in 1/10 IPOS stock depreciates -15% (unsuccessful).
a. Average IPO underpricing (first-day appreciation)?
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