Which of the Following Is NOT One of the Four

Multiple Choice

Which of the following is NOT one of the four characteristics of IPOs that puzzle financial economists?

A) On average,IPOs appear to be underpriced.
B) The long-run performance of the average newly public company (three to five years from the date of issue) is superior to the overall market return.
C) The number of IPO issues is highly cyclical.
D) The costs of the IPO are very high,and it is unclear why firms willingly incur such high costs.