Why Is It in General Difficult to Determine the Market

question 9

Multiple Choice

Why is it in general difficult to determine the market price of a private corporation's shares at any point in time?

• A)It has a limited number of owners.
• B)It is difficult to obtain enough information to accurately value such a company.
• C)There is no organised market for its shares.
• D)The price of its shares is fixed by the owners.

---

Definitions:

Confidence Interval

An array of values, extracted from sample statistics, considered likely to have within it the value of an unknown population parameter.

Population Variance

Population variance is a measure of the dispersion among numbers in a population set, indicating how much individual numbers differ from the population mean.

Normally Distributed

A distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Confidence Interval

Values range, derived from statistical samples, that possibly includes the value of an elusive population parameter.