1. The evidence on IPO sales is varied from issue to issue, but there are three common themes; underpricing, underperformance, and the reasons for going public. Explain these three themes. Find a recent USA example for at least one of these.
2. Explain in words what beta is and why it is important. Select a company, go to yahoo finance, find the company’s beta and analyze this beta. Specifically, explain what the beta for the company means, and does it make sense given the industry this company is in?