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    Stock Portfolio and IPO Underpricing

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    Having heard about IPO 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 follows:

    IPO Shares Price per
    return Allocated to Me Share Initial
    A 500 $10 7%
    B 200 20 12%
    C 1,000 8 -2%

    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?

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