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In which of the following circumstances would you expect the first-day return from investing in an IPO premium to be highest?
a.
An IPO where there is high demand from investors that is issued in a year where many other IPOs are also issued.
b.
An IPO where there is low demand from investors that is issued in a year where many other IPOs are also issued.
c.
An IPO where there is high demand from investors that is issued in a year where very few other IPOs are issued.
d.
An IPO where there is low demand from investors that is issued in a year where very few other IPOs are issued.
e.
All IPOs have the same expected first day return.
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