Having heard about IPO underpricing. I put in an order to my broker for 1,000 shares of every IPO he can get for me. After 3 months, my investment record is as follows: IPO A B C D Shares Allocated to Me 588 200 1,000 Price per Share $10 20 8 12 Initial Return 7% 12 <-2 23 a. What is the average underpricing in dollars of this sample of IPOs? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Having heard about IPO underpricing. I put in an order to my broker for 1,000 shares of every IPO he can get for me. After 3 months, my investment record is as follows: IPO A B C D Shares Allocated to Me 588 200 1,000 Price per Share $10 20 8 12 Initial Return 7% 12 <-2 23 a. What is the average underpricing in dollars of this sample of IPOs? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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