Which one of the following tends to be true for the average investor?

Question

Quizplus · Accepted Answer

The winner's curse refers to the tendency for investors to overpay for assets, including IPOs, due to the excitement and hype surrounding them. This often leads to lower returns for the average investor in the long run. ASX regulations do not guarantee protection from losses, and average investors may not be allowed to purchase IPOs at the offer price depending on the particular offering. It is also not common for average investors to receive their full allocation of shares in an oversubscribed IPO, and initial high returns are more likely for those who have insider access or are able to purchase a significant amount of shares in the offering.

Which One of the Following Tends to Be True for the Average