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

question 20

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 shares, how much of the underpriced issue must he be awarded in order to gain $500 total?

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

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