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The Bert Corp. and Ernie, Inc., have both announced IPOs. You place an order for 700...

The Bert Corp. and Ernie, Inc., have both announced IPOs. You place an order for 700 shares of each IPO. One of the IPOs is underpriced by $15.75 and the other is overpriced by $6.50. You will receive all of the shares you ordered of the overpriced IPO, but only one-half of the shares you ordered of the underpriced IPO. What profit do you expect?

Multiple Choice

  • $15,575.00

  • $5,512.50

  • $4,229.25

  • $962.50

  • $6,475.00

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