If an Investor Can Earn 20% on Underpriced IPOs,but Will

question 80

Multiple Choice

If an investor can earn 20% on underpriced IPOs,but will lose 10% on overpriced IPOs in which he was awarded $2,000 worth of the overpriced issue,how much of the underpriced issue must he be awarded in order to gain $500?

• A) $1,500
• B) $2,500
• C) $3,500
• D) $10,000

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