Define 'Fair Value' and Explain Why It Is Often Difficult

question 14

Essay

Define 'fair value' and explain why it is often difficult to determine whether prices are 'fair'.

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Definitions:

Variability

The extent to which data points in a statistical distribution or data set diverge from the average or mean value.

Range

The difference between the highest and lowest scores in a set of data.

Standard Deviation

A measure of the amount of variability or dispersion of a set of data values, indicating how much variation there is from the average (mean).

Range

The difference between the highest and lowest values in a data set.