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US Market Report - Should I "Like" Facebook's IPO?
May 16, 2012
The Facebook IPO raises questions about both the stock’s valuation and its risk characteristics. In this report, we explore how including or exluding Facebook might affect the risk of style, or size segment portfolios of US equities. We also explain how the USE4 Model estimates factor exposures and specific risk of stocks before and after their IPO. For Facebook, we provide an estimation of those risk numbers, which can be used to create proxy assets in Barra Aegis or Barra Portfolio Manager.
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Research authors
- Zoltán Nagy, Executive Director, MSCI Research
- Audrey Costabile