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Analyze an IPO

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Having heard about OPI underpricing, I put in an order to my broker for 1,000 shares of every IPO he can get me. After 3 months, my investment record is as attached.

A. What is the average underpricing of this sample of IPOs?

B. What is the average initial return on my "portfolio" of shares purchased from the four IPOs I bid on? Calculate the average initial return weighting by the amount of money invested in each issue

C. Why have I performed so poorly relative to the average initial return on the full sample of IPOs? What lessons do you draw from my experience?

Please see attached template 14-7

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