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

question 65

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)$10,000 500 = (0.20 x Value of shares) - (0.10 x 2,000)

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Definitions:

Race

A social construct used to categorize and differentiate human populations based on physical characteristics, often entwined with historical, cultural, and political factors.

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A country in North America, comprised of 50 states, a federal district, and several territories, known for its democratic government and diverse population.

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A mass emigration of Cubans to the United States in 1980, with around 125,000 people leaving Cuba from the port of Mariel to Florida.