DQuestion 4 0.5 pts Facebook CEO Mark Zuckerberg recently announced that it woul

Question

DQuestion 4 0.5 pts Facebook CEO Mark Zuckerberg recently announced that it would be going public. The usual suspects, Morgan Stanley, JPMorgan Chase and Goldman Sachs will be the lead underwriters. When Facebook was choosing underwriters, they were made varying promises depending on the health of the stock market at the time of the IPO lf Margan Stanley told Facebook that it could raise $606. b, and $20b if the market were strong, flat, or weak, JPMorgan Chase sa that it could raise $80. soo. and S 15b. respectively. Goldman Sachs said that it could raise $100t. S50b, and SSb, respectively,, and analysts predict that there is a 40% chance the markets wil be strong, a 40% chance the markets will be flat, and a 20% chance the markets will be weak, based on expected value which investment bank should Mark Zuckerberg choose? JPMorgan Chase or Goldman Sachs Morgan Stanley JPMorgan Chane or Morgan Stanley JPMorgan Chane Goldman Sach Preious Next . logitech

Explanation / Answer

Goldmen Sachs because it will earn 61b

Jp morgan will earn 55b

Morgan stanely will earn 44b

so highest is goldmen

therefore he should invest in Goldmen Sachs

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