If shares in successful IPOs are oversubscribed by a factor of 5 and if offerings either appreciate or depreciate by 10% on the first day of trading, what would you expect your rate of return to
Be without IPO underpricing, assuming fair rationing? (Assume half of the offerings are
Successful.)
A)-4%
B)-1%
C)-5%
D)+1%

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The Answer of If shares in successful IPOs are oversubscribed by a factor of 5 and if offerings either appreciate or depreciate by 10% on the first day of trading, what would you expect your rate of return to
Be without IPO underpricing, assuming fair rationing? (Assume half of the offerings are
Successful.)
A)-4%
B)-1%
C)-5%
D)+1%

If Shares in Successful IPOs Are Oversubscribed by a Factor